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Mortgage:
Your First Mortgage
How to Qualify for a Home
Mortgage Loan
How to
Qualify for a Mortgage Loan
Applying for a mortgage loan is quite an
important step for many people. However,
many are quite adamant about actually
applying for the mortgage loan simply
because people are not sure what they
need to qualify for one. The
qualifications of a mortgage loan are
actually not that complicated.
Here
are some of the general guidelines of
how you can qualify for a mortgage loan:
1. If
you have filed for bankruptcy, you
should wait for at least 2 years since
your final discharge date.
2. If
you have had a foreclosure, there should
have been at least 3 years since the
foreclosure had been finalized.
3. You
should have had no late payments with
your previous credits for at least one
year (12 months). But if you have had a
great credit record for several years
and you had some little occasions of
late payment, your application might
still be considered. Usually, lenders
watch out for late payments that are 30
days behind or more.
4. Your
rental payment history might also be
checked. You should have punctual
payments for at least, the last 2 years
to prove that you pay on time.
5.
Usually you might get disqualified for a
mortgage loan if the government has
guaranteed your student loan to be
default. However, there are cases the
disqualification may be lifted provided
that you have renegotiated your
repayment schedule for the loan and you
have made punctual payments again for
the past year.
6. All
of your account that is in a collection
status should be repaid prior to the
application for the mortgage loan.
7.
Judgments ordered by the court should
already have been paid in full. Those
cases that involve child support should
have payments that are current and
caught up.
8. If
you are self-employed or your income is
based on commission, you would usually
need to have been receiving a steady
income from that source for at least two
years in such a way that the lender
would be able to account for your
average income. There may be some
exempted cases, however.
9.
Lenders would usually only account for
bonus or overtime pay as part of the
“qualifying” source of income if you
have had a history of bonus or overtime
pay from your present employer for at
least a year or two. Your employer
should verify how much overtime hours
you have served or how much bonus income
you would be getting for such sources of
income to be considered.
10. If
you have two jobs, your secondary income
may usually be counted as part of the
qualifying income when you have had a
continued history of earning from both
jobs in the past two years, otherwise,
only one job may be included in the
qualifying income.
11. If
you have been receiving income through
child support, you should have been
receiving income consistently. You would
be required to submit a history of the
payments made for the child support.
Usually, if your child support status
has just been awarded recently, it might
not be considered as a qualifying source
of income.
12. If
you are currently being sued, or if you
are currently involved in any legal
matter such as an ongoing divorce suit,
you might have to wait until the lawsuit
becomes settled before you could apply
for a mortgage loan.
What is
the point of these qualifications?
Lenders
carefully scrutinize your qualifications
in order to ascertain how much the
maximum amount of money you could afford
to pay them ever month. They do so by
fitting your information into certain
formulas that give fairly accurate
predictions. Should these predictions
prove that you can afford to pay the
monthly dues that will be stipulated by
the loan, you are most likely to be
granted the mortgage loan.
The importance of having a clean or at
least a decent record cannot be over
stressed when it comes to getting a
mortgage loan. However, if you have had
some small stains in your record,
lenders provide considerations such as
specified above. Knowing these, you can
pretty much estimate if you would be
able to qualify for a mortgage loan or
not.
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