When you are starting to purchase a home there are going to be plenty of people that you are going to have to work with. This includes the home lender who is going to help you get your mortgage and there is so much that you want to know. There are going to be plenty of questions that they would be asking you and you should be prepared to answer them fully and honestly. Here are just a few of the main questions that the lenders would ask, so go ahead and keep reading to know more.
One of the first things that the lender is going to ask you about is what is your current employment status. They are going to want to know how long you have been working in the position you currently hold and what you do. However, the longer you hold the position that you are working in the better, so make sure that you are thinking about that.
When you are looking to buy a home you need to have secure employment where you are making a sufficient enough in terms of salary. Fred Franks a Real Estate Broker in Ocala, FL stated “I tell all the realtors Ocala FL I train to tell their clients; To always stay with your current job if you are looking to secure a mortgage.” This is because the longer you have been with the job, then the more favorably it looks, so don’t switch right before applying.
How Much You Make
The lender is also going to be interested in knowing just how much you are making in terms of salary every month. This is a significant piece of information that they are going to need to know since it can determine how much you can pay monthly. This is going to assure them that you are going to be able to make enough to cover the payment for your mortgage without problems.
They would verify the amount that you are making by checking out your W-2s, tax statements or even your paycheck stubs. Ensure that you have a steady income when it comes to applying for your mortgage and make sure that you can show that to the lender. If you don’t have a steady income you are going to need to provide more details regarding the inconsistent income you might have.
Another thing that they are going to want to know about is the amount of debt that you might have. This is a huge consideration because the more debt you have, then the harder it will be for you to meet all of the requirements every month. They will look at a wide variety of types of debts like alimony, student loans, credit cards, car loans and even other mortgages. You want to make sure that you are showing them just how much debt you have and that you are able to make the necessary payments every month.
Having debt isn’t necessarily going to be a bad thing since it can show them that you are reliable when it comes to paying it off. However, you want to make sure that you don’t have larger ratio of debt, which should include the new mortgage, compared to what you are earning. Showing them that you can pay off the debt and that you are making steady payments monthly is a good thing and is a positive factor.
Assets and Savings
Also, you are going to want to show them what types of assets you might have along with how much savings you have. This is going to require that you show them just how much money you have saved in any other accounts along with the investments you might have. It is ideal that you have around 2 months of mortgage payments saved up in case of any problems. This is to show them that you can get through purchasing your home and still have the necessary funds to pay the mortgage without any problems.
The more savings and assets you have the happier and more satisfied the lenders would be that you can honor the agreements that you are making. They also know that something might come up and that you are going to need to fix something, which could put a hole in your monthly budget. However, when you have a savings you can rely on that and still have enough to cover the mortgage easily with fail.
In a perfect world everyone would give around 20% of the total mortgage price as a down payment. However, lenders know that this isn’t always the case and they are going to want to know how much you are going to be putting down. You should make sure that you are talking to the lender if you aren’t going to be able to put that much down to figure out what they suggest as the minimum amount or what they require. If you are planning to buy in a 55+ community like Oak Run Ocala FL, I would recommend putting a big down payment.
You would also want to talk to them about where this money would be coming from and most often, they like to see it come from savings. However, they would also prefer the payment to come from selling another home and they want to be able to track where it comes from. Make sure that you are thinking about this and that you are discussing what you are paying and how you are paying with the lender so that it can make the entire process easier and faster.
It is extremely important that you are aware of the questions that any lender might be asking you when it comes to getting a mortgage. They would be asking you in-depth questions regarding how much you are earning on a monthly basis and would require proof. They would also want to know about any debt that you would have and what that costs you every month. The down payment is another area where they are going to want to know what you can afford and where the money would be coming from.