Obtaining mortgage loan is quite an valuable step for many citizens. However, many are quite unwavering about actually forwarding an application for the mortgage loan only 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. You should wait for at least 2 years since your final discharge date, if you had gone through bankruptcy filing
2. You should wait at least 3 years since the foreclosure had been Completed, in case you have had a foreclosures in the past.
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. Lenders will check your rental payment history. You should have regular, on time payments for your rental residence for at least, the last 2 years to prove that you pay on time.
5. If the government has established your student loan to be in default, it is possible that you are not found to be a qualified applicant for a mortgage loan. However, there are cases the disqualification may be waived provided that you have entered into your repayment negotiations to schedule for the student loan and you have made punctual payments again for the previous year.
6. You should pay any outstanding collection payments prior to filing you application for the mortgage loan.
7. If you are subject to cases that involve child support payments, your payments should be current and caught up. All court ordered judgments should have been paid up to date.
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 generally only take into consideration rewards or overtime pay as part of the “qualifying” source of earnings if you have had a history of rewards or overtime pay from your current 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 taken into account.
10. For income from a second job to be considered as part of your qualifying income, you have to have a long history of at least two years receiving that second income as part of your toal earnings.
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. It is not advisable to apply for a mortgage loan while being involved in a lawsuit or any legal matter. You should prospone your application until that legal matter is settled and resolved 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 every month.
They do so by plugging 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 significance of having a clean or the slightest a perfect record cannot be overemphasized when it comes to getting a mortgage lo
However, if you have had some small imperfections 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.