When you apply for a mortgage at Home Sure Lending, there are many criteria that we take into account before we decide whether to accept or reject an application. Knowing what those criteria are can improve your chances of having your application accepted. Here are some of the most common criteria we look at when someone applies for a mortgage:
Why do we care about your income? Largely because whether or not you have a steady income is a good indicator of whether or not you will be able to stay on top of your mortgage payments. Our job as a lender is to find applications that we can lend to that are likely to pay us back. Those with a steady income are seen as more likely to do that. This doesn’t mean that you have to have a typical corporate cubicle job in order to get a mortgage, it simply means that some form of income is preferable over no form of income.
Credit score is one of the most influential aspects of mortgage applications. Because your credit score and report are a summary of your financial history, they are usually considered to be a good indication of how likely you are to be on time with your payments and to uphold this financial obligation.
While a “low” credit score doesn’t necessarily mean you will be automatically rejected, the higher your score is, the more likely your application is to be accepted. There are lots of different ways you can improve your credit score, including being more faithful about payments, paying off debts, and having mistakes removed from your account.
When determining whether or not someone is a good candidate for one of our mortgages, we will almost always consider their personal assets. These assets include bank accounts, investments, and even retirement funds. This gives us and other lenders a good idea of how much money you have on hand—in short, how stable your financial situation is.
These assets are sometimes looked at as collateral, as what a lender will be able to claim from you if you are unable to pay your mortgage. Don’t let this frighten you away from applying for a mortgage! We love to work with home buyers to help them find a mortgage that fits their needs and will be easy for them to pay off!