Tips for Potential Mortgage Applicants

 

Mortgage Applicants pic

Mortgage Applicants
Image: investopedia.com

Under the guidance of president David Gomez, Priority Mortgage Group helps to connect applicants with appropriate home loan products. Priority Mortgage Group does business as Priority Financial Group and works with borrowers out of its San Dimas, California, office.

To secure a mortgage, a borrower must prove to the lender that he or she can afford the associated cost. Lenders often start by checking the borrower’s credit score, which should ideally be above 680 if the borrower is applying for a conventional loan. If an aspiring borrower has a score that falls below this threshold, he or she may wish to take some time to pay off bills and get current with payments before applying for a home loan.

The borrower will also need to gather documentation of his or her income and regular expenses. Those with consistent income may need only to provide two weeks of pay stubs, though lenders may ask for one to two years of tax returns for those who are self-employed or have variable income for other reasons. If a borrower’s job is stable and pays enough to fund the proposed mortgage payments, it is to the borrower’s advantage to stay in that job at least until closing.

Knowing one’s income and financial obligations can also help a borrower determine what mortgage amount might be affordable. Typically, it is recommended that housing costs total no more than 35 percent of one’s pre-tax income. Down payments can be significant, often reaching 20 percent of the purchase price of the home, so the borrower must look at his or her savings as well, lest up-front costs come as a surprise.

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