Factors that affects your Mortgage Application  

When you want to borrow money from a company or a bank there are something that should be considered first before anything can be done. There are some requirements you have to fulfill so you can get approved for the loan. Whether it’s a primary mortgage or Barrie Mortgage Broker would still be cautious in letting you borrow the money. There are a lot of appraisals and other legalities you have to go through to ensure that you are able to afford the loan. 

Mortgage Application

So, in this article you will learn what are some factors that will affect your mortgage application both in a negative way and positive way.  

EMPLOYMENT  

This is basically just a way for your lenders to see if you can hold a steady job for a longer period. Are you good at keeping jobs or are you just hopping from one job to another? This will help them determine if you are able to pay the loan with a stable job or with a freelance type of job. This is important because if you lose your current job you will most likely be unable to pay. So, they’ll have to consider that for security. 

CREDIT  

You will also need to make sure that your credit score is higher. You need to make sure that you are staying on top of your bills, paying them on time and debts are all down low. That will make your credit score higher which will give your lenders an idea of how a responsible payer you are when it comes to your debt. When you have a high credit score it means you are a good and responsible individual who pays their bills and debts on time.  

DOWN PAYMENT 

Down payment can help you save on application of a high mortgage loan. If you have good credit you can get away with a small down payment. If you have bad credit you can still be approved for a mortgage but you’ll have to pay a big down payment. However, if you can save for your house it can add to the points for the lenders showing them that you are able to save money. Which will make it all better so, you can even get a good deal out of it.  

DEBT-INCOME RATIO  

Creditors will also check on your debt to income ratio and if you are able to balance your debt to your income. This shows that you have a good mind in your head and will also show that you are more likely to think if you are able to pay your debt. Of course, different lenders or creditors will have differing way or standards to follow when talking about the ratio between your debts and your gross income.  

These are just a few of the things that creditors would look into that will greatly affect your mortgage application, but the bottom-line is if you do get approved you should be realistic and go for the amount that you can afford in the long run.  

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