If you've just recently gone freelance, you may also run into issues getting
approved for a mortgage if you don't have a track record to demonstrate your earning potential.
If your total debt payment (mortgage + student loans + other debts) exceeds 36 % of your income, your lender will probably
not approve you for a mortgage.
When approved for a mortgage protection policy, you have a legal contract with an insurance company that guarantees your beneficiaries will be cared for when you die.
On another note, your debt is taken into consideration when getting
approved for a mortgage so paying down that debt will likely increase the loan amount you are approved for.
And the extra payments are even more dramatic if you have poor credit; providing you can even get
approved for a mortgage loan in the first place.
As fewer and fewer homebuyers are
approved for mortgages in today's tight credit market, it's critical to make a good impression on your lender.
Your clients who have the above documents readily available are much more likely to be
approved for a mortgage if they qualify based on their income — as long as their credit is strong.
Private mortgage lenders have lending requirements that are different from banks and can
approve you for a mortgage even if you've been turned down before.
Many first time home buyers struggle to get
approved for mortgages because they can't meet the typical 20 % down payment minimums on the size of home they want.
Not only do credit cards have high interest, but having too much debt from them can keep you from getting
approved for mortgage refinancing or a loan to purchase a property.
A pre-approval letter or a pre-qualification letter can help demonstrate that you have a good chance of being
approved for a mortgage for the amount that you've offered on the home.
As a result, some people get
approved for a mortgage only to find themselves caught in an annual cash crunch because they didn't budget for their HBP payment.
Reducing your debt in one of these ways can also serve to raise your credit score and balance out your credit - to - debt ratio, improving your chances of being
approved for a mortgage once you've saved up for your down payment.
Banking regulators are also strengthening lending standards to help ensure that borrowers are not
approved for mortgages larger than they can handle.