Your Questions About Check My Mortgage Loan

Linda asks…

mortgage loan, very good credit but no income verification proof?

looking to get home loan, my relative has both excellent credit score of 790 and has income of about $ 2100 monthly and my relative has documents like pay checks and tax return documents to prove his income. I myself too have very good credit score of 756 and I do a self job and can’t prove my income as I don’t have any documentations to prove income.
Will that be a problem to us for getting approved for a loan amount of about $250k?

I am going to file tax return very soon so I can prove my imcome to home loan lender.

Will we both be subject to income verification despite the very good credit score?

What do we need for approval process? documentations?

Thanks

admin answers:

Credit history shows your willingness to pay back debt.

DTI (debt to income ratio) shows your ABILITY to repay a loan.

Even if someone has outstanding credit they have to be able to repay the loan. Loan officers have to document income to show the customer is capable of paying off the loan.

Generally in self employment cases you will need 2 years tax returns.

This area has gotten MUCH MORE STRICT in the credit crunch. “No Doc” loans (no supporting documentation) are among the most problematic loans. They were even renamed within the industry “Liar Loans” because simple math was used to find out what they would have to claim as income to qualify for the home purchase and people would frequently lie since there was no documentation being done.

These loans are still out there for high credit people like yourselves but if you have to resort to a “No Doc” loan be prepared to pay a MUCH HIGHER interest rate.

Nancy asks…

mortgage loan, very good credit but no income verification proof?

looking to get home loan, my relative has both excellent credit score of 790 and has income of about $ 2100 monthly and my relative has documents like pay checks and tax return documents to prove his income. I myself too have very good credit score of 756 and I do a self job and can’t prove my income as I don’t have any documentations to prove income.
Will that be a problem to us for getting approved for a loan amount of about $250k?

I am going to file tax return very soon so I can prove my imcome to home loan lender.

Will we both be subject to income verification despite the very good credit score?

What do we need for approval process? documentations?

Thanks

admin answers:

Lenders will typically loan you about 3.5 times your gross annual income. You can use previous years’ income tax forms as proof of income. Another way of looking at that is that your total mortgage payment PITI (principle, interest, taxes, and insurance) should not exceed approximately 40% of your gross monthly income IF you have no other debt (car payments or revolving credit card balances).

Richard asks…

can paying my mortgage loan on time help my credit score…and other financial questions…?

ok…so last time I checked my credit score (about four months ago) it was 609. I do have a few debts from my past. All the debt I owe adds up to $1500.00. I plan to pay this off soon, but just haven’t got the money yet. Everything I owe dates from two years ago and later. nothing recent. Well, I got a loan for my trailer with a co-signer two months ago. Have made my payments ontime. Well, will this help my credit score at all? How long will it take to help out? I just recently wrecked my car and I got $2000 for it totaled. I need a good reliable car so I can go back to work. I need a car loan BADLY!!! Not much maybe 9-10K at the most but definitely willing to take even lower than that! I would go as low at $4500-$5000. I have two kids and really can’t get some cheap car that’ll break down next month. How can I get an auto loan with a credit score of 609. Do you figure it’s gone up any since four months ago? Please help!!! I am 21 and should know more about this stuff, but I have no clue about the whole credit and loans thing. Any info would be EXTREMELY helpful! Thanks again! Take care everyone and God bless!
ok I never told any of you the debt so…I HAVE NO CREDIT CARDS!!! also ALL of my debt comes from 1. when I was pregnant with my daughter I had medicaid to cover all expenses. I was also on my mom’s insurance but it wouldn’t cover me beign pregnant so i got medicaid. i kept have probs with medicaid paying and would get bills and have to call medicaid and say “hey you need to pay this bill” and they’d do it. well some of my last bills I kept putting off and forgot to tell them about so now it is up to me to pay. they are 2 years old and i doubt med pays now. then 2. i had an iphone and lost it. I kept looking for it instead of reporting it, so when someone else found it I had to pay the charges they ran up. My fault completely, but don’t tell me not to buy somethign I can’t afford. My debt has nothign to do with that! thanks to everyone though. FYI That isn’t supposed to be as rude as it looks lol!
Oh and I don’t mind a high interest rate…also did I mention the $2k I have right now? that’s the down payment!!! anyways…just thougth I’d add

admin answers:

Your credit score is from 4 months ago, but the loan for your trailer happened 2 months ago. Your score has probably dropped due to the inquiry and the increased debt to credit ratio (e.g., higher credit utilization). You should get a new credit score to see where it is now.

Time will slowly help your credit score, but I think 2 months is too short of a time for your score to have recovered. No one knows the exact formulas for calculating credit scores (since they vary between credit bureaus and are guarded secrets), but I think maybe in the next 2 to 4 months, you’ll be back on track.

You may have to get a co-signer for the car loan, unless the dealer is able to offer you a loan (with probably a terrible interest rate). If you bank with a credit union, check to see if they offer auto loans. They usually have better interest rates, and some will even help you find a car based on your specifications.

Thomas asks…

Does the credit card lenders check with the employers?

i never had a credit card,loan,overdraft,mortgage ,etc before,i have a current account .if i apply for a credit card from my current account bank,Are they going to check again ? because i get cash in hand ,my boss dont want any kind of phone calls .But my wifes wages credited in to my account every week .more than 500 pounds a week .Does my wife wages help me get credit card?

admin answers:

Hi there.
Apply for a joint card, show the wages coming in to your account as proof you can pay for it – which is what they care about.
Do not even mention your own dodgy income to them, they will shy away from criminal activity like that and possibly refuse you just for that.
A joint card on your wifes income into your account will do the job.
Good luck, Steve.

Susan asks…

How can I get pre-approved for a mortgage loan?

I have owned my home for 6 yrs and am looking to buy another. My credit is fine my income is fine I own 20% of my home. I found a house that is cheap and needs some repairs/renovations. I am trying to borrow 80% of appraisal and keep the equity to make improvements…IE furnace carpet tile appliances about $10-15,000. The numbers are not the problem. I am getting all kinds of reasons:
1: No loans for more than 96.5% of purchase price.
2: regarding a 203k loan, You live 5 miles away from the new home that’s too close.
3: regarding a 203k loan, you need to own 25% of your current home
4: no loans under $50,000 out there

I thought it would be simple get an appraisal, borrow 80% put the rest in checking, call a contractor to do some work, pay him, and finally move in. Am I asking for something I caannot have?

admin answers:

You have to contact a mortgage broker or lender to find out what you can afford. If you don’t have a low enough debt-to-income ratio, you wouldn’t get approved for a loan no matter how much equity you have in your home.

This can be done over the phone, as long as the mortgage broker or lender has access to your credit report. They can even give you a preliminary approval based on what you tell them verbally, but they will have to verify your debts and income to issue an official pre-approval.

Note that loans for non-owner occupied property usually requires a 25% down payment. So, if you’re buying a second home, you have to come up with at least 25% down. Also, if you plan on renting out either of your properties, that rental income doesn’t count for your debt-to-income ratio, because it doesn’t exist yet. You have to have verification that you have been renting this property out for a while, usually in the form of a Schedule E form from your last tax filing.

Another thing to look at is a construction loan. That’s where you purchase a home that appraises for x-amount of dollars and get a loan based on what the home will appraise for once remodeling is done. You don’t get the additional cash up front, but rather you get like a home equity line of credit, where you draw money on it to pay contractors, buy materials etc. After construction is done, the loans roll together into one fixed, fully amortized loan. But, on a non-owner occupied home, that 25% down payment still applies.

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