Working on a mortgage alone might be too much to handle for anyone who has to take the task. Getting the help of a mortgage lender assures more detailed and up to date information about the mortgage industry and everything one has to deal with when faced with the task of mortgaging the dream house.
It takes quite a lot to purchase a house. This is in reference to more than just the financial aspect of the said act but also pertaining to the various details that have to be wary of and should be highly considered as well. Being well-informed about the mortgage industry and the current housing issues is a good thing to start with.
Another important thing to put emphasis on is the individual's desire to purchase a house. This revolves around a variety of costs, and each one should be tackled carefully in order to make the most applicable choice. This is where the role of the mortgage lender becomes really important.
The lender is not just the one who provides the money to the interested borrower. He also is the one who ahs the capacity to answer all of the questions encompassing all necessary information that should be noted about pertaining to the mortgage offer.
So, what exactly are the things that a mortgage lender has to know about? They are as follows.
1. The borrower's income ' One's monthly gross income must be determined and presented for examination. The whole income of the household should be taken into consideration as a determining factor to the borrower's capacity to pay. This includes all sources of income aside from the main salary. Commissions as well as child support or alimony are considered a part of this.
2. The ratio of the debt and income of the borrower ' Basically, this pertains to the comparison between the borrower's income before taxes and the present debts incurred. Payments for car, house and credit cards are included under this category.
What a mortgage lender initially wants is for this ratio enough to cover the possible amount to be borrowed plus the additional amount to be lined towards the present debts. This can easily be computed. In fact, various online calculators are available for the lay people to make use of and be able to come up with a rough estimate of such figures.
3. The monthly payments ' The monthly mortgage payments are determined by the lender. This can be within the same range as the current figure the borrower is spending for their housing expenses while they are renting a house. Another consideration to bear in mind is the actual percentage the borrower can set aside for the said expense on a monthly basis.
4. The down payments ' This is a major concern for most borrowers since it takes a sizable amount of money to be put down initially. One hundred percent financing does not work well these days anymore. The absence of a down payment means a greater risk for the lenders. |
