Applying for a Home Loan?

Hot Tips for Home Buyers!

What Do Lenders Look for in Home Loan Applications?

• Credit
  · What are the FICO scores?
  · Are there any Judgments, Collections, Late Payments?
  · Quantity and Quality of the credit tradelines
• Capability
  · Job stability and history
  · Salary versus commission/bonus income
  · Deductions
• Collateral
  · Liquid funds – checking, savings, stocks, etc
  · Non-liquid funds – 401k, retirement
  · Gift funds

Avoid changes to your financial profile
Remember, lenders are looking for stability in all these categories.

• If you buy an expensive car with a loan that will affect your budget and your ability to repay a mortgage. It can also negatively affect your scores.
• Any large deposits and transfers of funds into your banking accounts have to be sourced. It is important to document all deposits (I would say any deposits over $1000).
• Changing jobs/employers is typically done to benefit and increase your earnings and is an obvious change. However, the lender can have additional requirements you will need to follow. If your pay structure chanes (more commission based than salaried, or salary to hourly) this can affect how they will qualify your capability to repay the loan.

Future Events:

Home Buying Seminar: Your Path To Homeownership - DATE TBD
For more information, contact:
Eileen Horan Mortgage California Ph: 650.645.1775 eileenhoran@mortgagecalifornia.com