How to Qualify for a Mortgage When the Banks Say No
People sometimes ask me why they should use Westchester Morgtage instead of one of the big banks. It’s a fair question, with an answer that goes beyond great service.
The lending industry bases their approval decisions on the following three criteria. Banks tend to take a conservative approach but mortgage brokers have more flexibility to offer their clients.
1. Credit score. Are you paying your bills on time? Have you defaulted on a credit card or fallen behind on your car payment? The bank will determine the risk of lending you money based on your previous bill-paying history.
2. Income. The bank will take a look at your income and assess your ability to repay both your existing debts and your future expenses. You’ll need to earn enough for them to feel confident in your ability to pay all your expenses while comfortably paying your mortgage premium each month.
3. Equity. This is your collateral available to secure the mortgage. The bank will offer you better rates when you pay a higher amount on your downpayment.
If the bank feels your credit history, income or equity are questionable, they will decline your mortgage application. So now what?
Here’s where an experienced mortgage professional can get a “yes” when the banks say “no.” First, I will get your paperwork and documentation organized up front. If you are divorced or in the process of divorcing, it is critical to show the divorce decree or separation document.
My job is to understand all your income sources and represent them properly for the underwriter. I also look for additional income. Alimony, child support and bonus income are sometimes left off the application and could very well be the difference between the approval or denial of the mortgage.
I dig much deeper than the banks for my clients. If you want the best chance to be approved for a mortgage, starting with Westchester Mortgage is the best path to take. Do you know someone who is thinking about using a bank for their mortgage? Please have them call me so I can help them gain every advantage in securing a mortgage approval.
April’s Home Improver
Grimebusters: Silly Putty and Alcohol
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