Your Questions About Check My Mortgage Application

Helen asks…

Does a mortgage application use your gross annual income, or gross monthly income to qualify you?

I work full time for 7 months out of the year, and part time for 5 months out of the year, how will that effect a mortgage application? My pay stubs show my yearly salary, but for those 5 months I have lower dollar pay checks.
So, I’m wondering if they go by gross annual income? or gross monthly income…
Any input will help.
Thanks!

admin answers:

They will use the monthly average of your gross yearly income. Generally they use a 2 year average if you are not salaried employee. They will need to verify income off 2 years of tax returns for most loan programs unless you receive w2’s in which case they generally use the most recent w2 and YTD income off your current pay stubs to determine income.

Maria asks…

Is it OK to apply to more than one lender for a mortgage so I can accept the best offer?

I am a first time home buyer and would like to shop around for the best deals/rates. I’d like to get pre-approved for a loan. I’d also like to shop around for the best terms, interest rates, etc. I’d also like to make sure I am pre-approved for the right amount (for the house that I want and can afford). Is it a good idea to apply for pre-approval to more than one lender so I can pick the best offer? I know it might be negative for a lender to see my credit report be pulled from different lenders. Would they see that as someone looking for the best loan or as someone looking to over extend their credit? Would they be able to tell the credit checks were pulled for a mortgage application? I’ll probably have more questions, but I guess I should wait for the answer to this one before jumping the gun. Thanks in advance.

admin answers:

Don’t let anyone pull your credit report until you have made your choice. You can get your score yourself then let the lender know the number. You can call around yourself and then compare rates on the same type of loan. Go for a simple straight forward loan. No variable rate, balloon payments, PMI etc. Talk to as many lenders as possible and write down everything each one says in a notebook. I have found e-trade to be very forthcoming and direct with good rates. Major banks can have decent loans too. Beware of companies who advertise on the radio. Trust no one until you do your research. Find out what the loan will cost as if you were going to write them a check for all the fees instead of letting them roll it into the loan. You’ll be very surprised at how many don’t want to answer that one. Also make sure there is no prepayment penalty. Some of the big advertisers on the radio charge enormous prepayment fees (if you need to sell or refinance) and are very sneaky about this. It is very easy to get financed. Make sure you can easily afford the payment. Most lenders will tell you you can afford a payment much higher than what you actually can while still eating. Good luck- arm yourself with knowledge and you’ll do just fine!

You do not want to apply for many loans!!! By getting your own score you can use this info to shop your loan around. Sometimes realtors choose lenders because the lenders bring donuts to their offices. Call every mortgage company you can on your own. When you have narrowed it down then ask around. Find out who other people you know have their loans through and why they chose them. Also by getting your credit report yourself you have time to check for and fix any errors that might be on your report.

Jenny asks…

What happens if I have an installment plan with the IRS and I don’t disclose it on my mortgage application?

The box said do you have an delinquent taxes and I checked no since I have been repaying them steadily. My brother says that I am delinquent? I’ve already provided my tax transcripts from the IRS and they didn’t say anything.

admin answers:

Your fraud will come up during the underwriting. They will stop that process. If you owe them any money you need to pay immediately, keep them happy, you don’t want them pressing charges against you.

Sandra asks…

Can I help with wife’s mortgage application?

I got married 3 weeks ago. We live in a condo that is under my name and it is going to get foreclosed on.(payed 209k they are going for 60k now) Is my household income and having the same pay check for 3 years any help to my wife if she is trying to get a pre-approved mortgage amount even though my credit is shot? Thank you.

admin answers:

If your condo is going through foreclosure then that will negatively impact your credit score. If you plan on applying for a new mortgage together, then your credit may hurt your chances of getting approved during the mortgage application, or it will at least impact your terms. If your wife plans to apply on her own, without your name on the mortgage and she has good credit, she shouldn’t have a problem getting approved. During the mortgage application process, it will ask for total household income and this is where you will have the opportunity to add your income with hers, which will help with her approval. If you ultimately need to work with a company that will help people with a poor credit history, check out www.consumerloansdirectory.com. This is a good online resource with lots of helpful tips and articles. Good luck!

Donna asks…

Do online free credit checks reduce your credit rating ?

I want to find out my credit rating so I can see what my chances are of getting a mortgage but I heard from a mortgage broker that it will damage my credit rating because every time you do a check it registers as a mortgage application, is that true ? Does it really reduce your score ?

admin answers:

Any inquiry as to your credit status shows up. Multiple inquires, regardless of where they originated, will drop your credit score.

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