4 responses to “How important are assets when applying for a mortgage loan?”

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  loanmasterone July 23rd, 2010 at 06:05

  Peter

  Although assets are a part of the application and you must list them. The most important thing is your credit score and how you have paid your debts based n your credit report that your mortgage broker/banker will have to obtain once you have completed your mortgage loan application.

  Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.

  In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.

  Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.

  He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

  The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

  When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

  #1 One month of pay stubs for each person that will be on the mortgage.

  #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

  #3 Two years of federal income tax along with the W-2 that match.

  Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

  Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

  Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

  If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

  You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

  Make sure your mortgage broker explain all your options so you may make an intelligent decision.

  What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

  So select the best option for you and your financial situation.

  You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

  Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

  Your mortgage broker will now order an appraisal to show proof of the property value.

  The mortgage broker might ask for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.

  After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

  Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

  I hope this has been of some benefit to you, good luck

  “FIGHT ON”

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  Realtoratheart July 23rd, 2010 at 06:11

  Lucy

  By paying off debt, your ratio’s change and it may qualify you to purchase more than before.

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  Othniel July 25th, 2010 at 05:45

  Cathy

  I don’t think an additional $1200 in your bank account is going to impress any lender but the ownership of ten acres of land is a good asset. You may need a down payment of 10% to 20% of the purchase price.

  Assets, income and good credit are all important to a lender. Your debt to income ratio is scrutinized and the longevity in your work is also a big factor. All you can do is try and see what they say. If they deny you they will tell you why and you will know what needs work in order to achieve your purpose.

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  dusty_titus July 28th, 2010 at 12:24

  Willie

  I’m sorry 70K loan won’t buy you much – even in Hesperia. Take the 10 acres and pay off the 1200? – and buy mobile home for the land. Rent the mobile home and now you are a landlord – with a investors income, plus whatever job you may have. The 1200 down payment you have saved (if that is all) won’t go very far in the purchase of a house worth 70K — least you can get away with is 3% (to cover – escrow fees, property taxes, homeowners insurance, transfer fees, loan originator, and about 40 other items) $2100 at least.