The mortgage industry has never been the same since the crash in the housing market happened several years ago. Qualifying for a mortgage was simple back then. All you had to do was provide some basic personal info, sign a few documents, and wait for your approval.
Today, if you are looking to get a Utah home loan from financial institutions such as Altius Mortgage Group, you better be prepared. Loan providers look at many things when evaluating your loan application.
Underwriters are Not Too Keen on Your Assets
Lenders want to know that you have money for down payment. They are not too interested in how much funds you have in your account or how many cars you own. After all, these assets are not mortgage collateral. What matters more to them is your income.
You will qualify for a loan based on your income, and not your assets. You have to show a healthy debt to income ratio.
Having No Credit Score Is Not a Good Thing
If you think that paying for everything in cash and not ever using a credit card will serve you in good stead when applying for a home loan, you are wrong. This is because without a credit history, there will be nothing on your credit report.
It will be harder to convince lenders that you can handle credit well. You must find creative ways to prove that you are creditworthy.
It Is Quite Difficult for a Self-Employed Borrower to Qualify
In general, it is very difficult for a self-employed business owner to obtain a home loan. This is because many business owners seem to have no income at all. They tend to write off big chunks of their revenues. While this may not be true in all cases, their tax returns tell the tale.
Even if you earn a lot of money not reflected on your tax returns, they will most likely turn down your application for a loan.
These are only a few facts about mortgages to keep in mind when you need to get one.