What do lenders require?
1.) Income – all lenders will require some form of stable income that proves that you can afford the Mortgage Payment required to purchase the property. Income can come from many different sources, salaried, self-employed, pension, stated, child tax, child support to name a few. Keep in mind many lenders have different criteria regarding income, finding the right lender that suits your needs is essential.
2.) Down Payment – all lenders will require a down payment on the property you are looking to purchase, the general range is between 5% and 35% depending on several factors. The source of this down payment is also important, generally it either has to be from personal funds or gifted from a direct family member. The down payment is often one of the key areas that we focus on during the pre-approval process to ensure you are ready to buy when the opportunity arises.
3.) Credit – for certain lenders your history of paying previous debts is very important, which reflects directly on your credit bureau. For other lenders this can be less important allowing clients with lower credit scores to still purchase a property. Again, making sure you are aligned with a professional that understands how lenders view credit bureaus is important. If you would like more information on Credit Scores please CLICK HERE
4.) The Property – This is important for all lenders as the property has to hold enough value to support the amount of mortgage being lent against it. A number of factors are taken into consideration including location, property condition and the general marketability of the area.
This is a very simplistic overview of what is required to qualify for a mortgage, there are thousands of different scenarios in which a mortgage approval can happen. Finding the rights person to guide you through the process is extremely important as each individuals circumstances are always unique.
If you would like to start a Mortgage Application please CLICK HERE
Or please feel free to text or call me on 613-362-5170.