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Real Estate: Do you qualify for a mortgage?

Most lenders require you to complete a mortgage application to determine if you qualify. The application is fairly standard from lender to lender and ask for following information: Your gross income, the value of your assets and your expenses and debts. The information you provide on your application determines whether you qualify for a loan and how much you can borrow. Lenders use what is known as a debt to income ratio. Lenders usually require that your housing costs do not exceed 28% of your family gross income. So the total mortgage payment including principal, interest, taxes and insurance (PITI) divided by your total gross income should be 28% or less. Also, the total mortgage payment, any car payments, credit card and any other loan payments divided by your total gross income, should not be more than 36% of gross monthly income. These two percentage ratios in mortgage industry is known as front and back ratio (28:36). Government insured mortgages such as FHA and VA loans have higher ratios (usually 29:41).

Applying for a Mortgage:
Traditionally, you find a home you wanted and then applied for a mortgage. But the best way to approach with buying a home is to first prequalify for a mortgage. That means a lender tells you not only whether you'll be approved to borrow, but also the size of the loan. So you know in advance how much of a house you can spend on after adding up the down payment.

Applying for a mortgage can be  both a stressful and exciting time for you. How do you make it less stressful? By understanding the process of what lenders are looking for in your mortgage application. There are three main things lenders look for when approving you for a mortgage: Your credit report, your credit score and your ability to pay (your income). A potential lender is looking for a few key things while deciding whether or not to approve you for a mortgage. The most important thing that they will look at is your credit history. When a bank considers lending you money they want to know if you will be a good risk for them. The most accurate indicator of this ability is what you've done in the past. Not only will they look at the specifics of your credit history but they will look very critically at your Credit Score. Your Credit Score is the method credit bureaus summarize what is on your credit report.

The first thing you should do before applying for a mortgage or any loan is get your credit report. For years the banks would never tell you your credit score. But no one should know more about your finances than you. Getting your credit report will allow you to correct any mistakes that appear and possibly get legitimate bad marks removed. It is very important to clean up your credit as much as possible before applying for a mortgage. The better your credit is, the less it will cost you to get a mortgage. You should get a "merged" credit report, which is a report from each of the Big Three credit bureaus, before applying for a mortgage because the bank will get your credit report from all three credit bureaus. You can order a 3-BUREAU CREDIT REPORT from CreditReporting.com.

Do you have the ability to pay?
This is the most important question a bank wants to answer while reviewing your application you want to give them as many reasons as possible to say, "Yes." One of the best things you can do is reduce the amount of all of your debts. Pay off all of your credit card balances, lay low for a while, and keep as few loans as possible. You may have to delay your application by a few months in order to reduce your debt load but it will be worth it in the long run. In order to avoid delays, you should start this process well in advance of your intended home purchase.

Sometimes when trying to get a mortgage on a new construction home, the builder will have an affiliation with a certain lender, sometimes more than one. This lender is usually the one which is handling the construction financing for the builder. It may be beneficial for you to apply with the recommended lender because sometimes they will give you favorable perks and reviews. They may pay closing costs or a share of the closing costs or give you a no points loan. However, it is always a good idea to comparison shop, so you should get a quote from loan comparison such as BestRate.com or E-LOAN to make sure that you get the best deal possible. This site will give you up to 4 mortgage quotes free when you fill out their easy online application. Always check the numbers on the various offers that they come back with. Carefully review these numbers to determine which combination of points and interest rate best satisfies your needs.

Next -->> How much of a house can you afford?

    Table of Contents:

1. Should you buy a home? Renting vs. Buying:
2. Steps to buying a home
3. What is a Mortgage and do you needed?
4. Different types of Mortgages
5. More Mortgage Choices
6. 0 to 5% down with FHA and VA loans?
7. Cosigning: The Pitfalls
8. Qualifying for a Mortgage
9. How much of a mortgage and a house can you afford?
10. Finding a home with FSBOs & Real Estate Agents.
11. It's closing time: Title and the keys please!
12. Tapping your home equity: Refinancing
13. Tapping your home equity: Home Equity Loans
14. Frequently Asked Questions (FAQs) on Real Estate & Mortgages

 
    Jokes:                     

• Adult Jokes, XXX
• After the Vows, Marriage Jokes
• Family & Relationship
• Kids are funny
• Lawyer Jokes! Honestly!!
• Military Jokes
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• Mr. Bean Jokes
   
• Oh God!
• On Driving (DMV)
• On the Job
• Poker Cartoons
• Police Jokes
• Smart Blonde Jokes. NOT!
• Traveling

    
      Other Funny Stuff:

• 21st Century Lifelessness
• 25 Signs you've grown old
• 20 ways to torture Santa Claus
• 50 Ways to Say "I Love You"
• 50 Completely Useless Facts!
   
• Amazing But True Facts
• A Drastic Diet
• A Crappy Date
• Beer: Warning Label
• Best 10 Answering Machine Messages
• Best GCSE Answers
• Best Lawyer Story
• Big-Busted/Small-Busted Women
• Bored at work
• Clemson Wedding

• Dating vs. Marriage
• Dear Albert:
• DOG vs. WIVES
• Don't say these during sex
• Five Stages of drunkenness & sobering up
• Feeling OLD? No? Think again...
• Few tax facts
• Funny Quotes & One Liners
• Funny & Weird Bumper Stickers

• Getting older
• Great Predictions! NOT!
• Guys' Rules. Finally!!
• Hilarious Tee Shirt Slogans
• If You Love someone
• Letter Of Recommendation For Bad Employees
• Men and Women FAQs
• Men's English
• On Cooking!
• Pick Up Lines

• Relationship Guide
• Rules that govern the females
• Silly Questions & Riddles
• Stupid Jokes on Men
• That's a SIGN
• The last 10 things a man or a woman would say
• Things said in court
• Things we learn from movies
• Today's Stock Market Report
• Tongue Twisters

• Ways MEN are turned DOWN
• What do you think?
• Who reads this? Newspaper Guide
• Why Beer is better than Women!
• Why chocolate is BETTER than sex
• Why older Woman?

1. Spend less than you earn! People who spend every penny they make usually end up going broke.......
2. Take enough risk on the money you save! Playing safe by putting your money under the mattress or in a savings account will not make you wealthy..

Remember that..... Fully one-fifth of humanity, some 1.3 billion people, struggles to survive on less than $1 per day. About 40% of humanity survives on less than $2 per day. More than a billion people around the world will go to bed hungry tonight. Life expectancy in some 32 countries is less than 40 years. If you have a few extra dollars in your pocket (you don't have to be a millionaire to make a difference), please share some of your financial good fortune with others who are in great need.

Think About It...  Being in the 'now' brings a freedom, unlike living in the past or in the future, which is a kind of imprisonment. This isn't a kind of a denial where you pretend life doesn't have problems. Life is full of problems, but most of those stresses and failures are reliving old hurts or worrying about future concerns. -- Carl Honore

When you 're diagnosed with cancer, you start to bargain with God: "Let me get through this, and I'll take better care of myself. I'll get my priorities in order. I'll learn to live every day to the fullest." Isn't it sad that you have to get sick before giving yourself permission to live life to the fullest? -- Robert Schimmel Look at Life in different & Positive ways