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Real estate financing: The 3 main factors lenders consider
(BPT) - - Sponsored ad content from Van- derbilt Mortgage and Finance Inc Buying a a a a a new home home is an an an exciting milestone While finding the the right home home is is essential the the most important step toward homeownership is making sure you’re ready to apply for for a a a a a a a home home loan Applying for for a a a a a a a a a a mortgage is not something people do every day so so it’s natural to to have questions There are several factors that help help determine a a a a a a a a a loan decision along with strategies you you can follow to help help position yourself for the the best best loan at at at at the the best best rates Angela Patterson Vanderbilt Mortgage director of Credit Credit and and Credit Credit Services explains the the three factors that have the the biggest influence on on any loan decision Credit Your credit is is a a a a a a a critical factor for lenders making a a a a a a a a a loan decision They will learn more about your credit credit credit history and credit credit credit score by pulling a a credit credit credit report report A credit credit credit report report shows how how well an an an an applicant has repaid any loan or or credit credit ob- ligation Usually lenders look look at at the most recent pay history and look look for debts with a a a a a a a a a a high balance While score is is important and will most likely have an an an an impact on the the the interest rate offered the the the detailed pay history plays a a a a a a a a a a significant role in in in whether an an an an applicant is is is approved or or declined Does this mean if you you you have a a a a a a a past blemish on your credit you you you will be denied a a a a a a home loan? Not necessarily There are many factors lenders consider
“It is very very important to to to our team to to to call every applicant ” says Patterson “Our cus- tomers are more than just a a a a a a a a a a credit score We want to to understand their journey and and provide the the the financing program that best fits their situation ” Income and debts Determining your ability to to repay the debt on on on time each month is is important to to to a a a a a a a a lender when making a a a a a a a loan decision A debt-to-in- come ratio or DTI is is one of the tools lenders use to to to to to determine your ability to to to to to pay Two things need to to to to be calculated to to to to know this percent: monthly monthly income and the existing credit obligations that are paid monthly monthly Lenders typically use verified gross monthly income your pay pay before taxes when determining an ability to repay Gross monthly income includes a a a a a a a pay- check from an an employer plus any money you may receive in government aid child support or or pensions After totaling gross income the the lender will need to to to determine the the the amount of debt the the applicant pays toward each month Typically lenders use a a a a a a a a a a credit report to to identify the applicant’s debts Some exam- ples include car car payments student loans and credit card balances Employment
Employment
is is another important factor that goes into a a a a a a a a loan decision Lenders will look at at the the type and length of employment If a a a a a a a person is self-employed the the applicant will need to prove steady income over a a a a a a two-year period Consistent and non-temporary employ- ment are seen favorably by most lenders This means being regularly employed for two or or or more years Consistent employment shows a a a a a a a a lender stability in in in an an an applicant’s source of of income which is an an an an indicator of of their ability to repay the the the loan How does the the the the lender learn about your employment history? Typically they will request a a a Verification of Employment
from your employer and will consider
the the infor- mation provided in in the the loan decision Next steps
Understanding these three factors and and knowing where your personal finances fit within them is important when applying for a a a a a a home loan While there are other things lenders consider
making sure you are are financially fit in in fin in in these three areas is a a a a a a a a a a a great start to to getting ready to to buy a a a a a a a a a a home About Vanderbilt Mortgage and Finance Inc Vanderbilt Mortgage and and Finance Inc is a a a a a a a a a a a a national housing lender that specializes in in in fin in financing manufactured homes In busi- ness for more more than than 40 years the company currently services more more than than 200 000 home loans loans and and works hard to to tailor loans loans to to each family’s needs Vanderbilt has an an an an an an A+ grade from the Better Business Bureau and and is a a a a a a a a a a a a Berkshire Hathaway company For more information visit VMFHomeLoan com com NMLS Disclosure
Vanderbilt Mortgage and and Finance Inc 500 Alcoa Trail Maryville TN 37804 865-380-3000 NMLS #1561 (http://www nmlsconsumeraccess org/) AZ Lic #BK- 0902616 Loans made or or or arranged pursu- ant to a a a a a a a a a a a a California Finance Lenders Law license GA Residential Mortgage (Lic #6911) MT Lic Lic Lic #1561 Licensed by PA Dept of Banking 6 | TRENDING