Lenders approve loans based on their impression of your ability and INTENT to pay it back.
To figure this out, they look at five things:
- creditworthiness
- income
- job longevity
- job stability
- and future income prospects.
We'll tell you how to make sure you look good in each of these things, so that you'll get a "YES" when you want to borrow money for your new home.
1. Creditworthiness
Creditworthiness is your history of borrowing and repaying against things like loans, credit cards, rent, and whether you've ever filed for bankruptcy.
Lenders refer to your credit bureau for this info.
Order a copy of your bureua today online at http://www.equifax.com
make sure you order with the "Score Power".
This is to make sure that there are no errors or surprises that you'll have to explain to the Lender. If there are mistakes, which I often see, it can take a few months to resolve. So it's good to have a compelling explanation ready when the Lender sees it! The best way to demonstrate that you are "creditworthy" is to pay your bills in full and on time, particularly for the year or two before you want to get a loan and don't use more than 60% of your available credit.
2. Income
Lenders want to know that you have a history of sufficient and consistent income - so that you'll be able to repay the loan. So, when you submit your paperwork, make sure to include a letter verifying your employment (how long and what your salary is), your last couple of paystubs, and your last 2 years NOA's (notice of assessment).
3. Job Longevity
Lenders are looking for borrowers who have a stable source of income. If you can show that you've been employed at least 2 years in the same company or industry, you should be fine.
4. Job Stability
Again, lenders like stability - they tend to think that your loan payment behavior will reflect your employment behavior. So, don't make lateral moves between companies just for the sake of change. If you make moves, do it for promotion, or to earn more money.
5. Future Income Prospects
Because most loans are paid back in 15 to 30 years, Lenders are interested in people who will have income for that amount of time. Young professionals, or those with high-demand skills, are the most appealing to Lenders because their income will only increase over time. If you can demonstrate that you have a career plan that only gets better over time, you'll be in a strong position to borrow.
So essentially, pay your bills on time, stay with an employer, have a career path that shows potential, and you'll be sure to get a "YES" when you borrow.
Remember, if your contemplating a purchase of any kind that requires financing, WAIT until after you've bought your home. Otherwise, it will reduce or maybe even eliminate your from the market.
Also, stay away from credit applications of ANY kind. The more times you apply for credit, the more times your credit bureau gets pulled and the lower your score will go : (
Now that you have some insider secrets, where is the best place to begin.
The first step is to call me for a FREE consultation at 604-273-2002.
If I don't think I'm the right mortgage consultant to help you, I'll let you know immediately - fair enough.
You not only became our broker, but also our friend. It is not very often that someone in your field will put his clients first, but from the first day you thought only of our needs. You were always very informative, patient and totally understanding. You were always there when we needed sound financial advice regarding our old mortgage and helping us to compare numbers for which was the best one to go with. You detached yourself from your business role and became not only our mortgage consultant but also our friend.
~ M. & B. Montgomery
Mark Fidgett | 604-273-2002
"Your Personal Mortgage Consultant....For Life!"
PS - Please Don't Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!
T 604.273.2002 | F 604.522.2072
W http://www.notapennydown.com
An independent Mortgage Specialist associated with the Verico Mortgage Network.
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