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Mortgage Application Can Be Easy - Be Prepared

October 26, 2011

Annie in Arlington is a potential new Grant homeowner in Cambridge Manor and she has a question that many new home shoppers are asking: I have heard that it is nearly impossible to get a mortgage loan even if I have excellent credit. How do I find out if I qualify for a new home in Cambridge Manor? Kevin Ruby with Community Mortgage, a Grant & Co. Preferred Lender and Premier Partner, has the answer: Well, Annie, it is really a simple process and the better your credit, the easier it is. The first step is to discuss your situation with one of our lenders at Community Mortgage and let us take a look at your credit. Generally, we will be looking at your credit score, your income and the amount of debt you are paying off monthly. Most mortgage companies want to see 620 and higher credit scores. All mortgage companies need to verify your income. They will want to see your current pay stubs and the past two years of W-2 forms and tax returns. Your mortgage lender will then figure your income and bills and make sure they fall within a good range debt-to-income ratio (usually 50% or less). Once this is established, the lender can tell you how much you can comfortably afford to spend on your new home and you will receive a preliminary mortgage loan approval. Having your documentation on hand can make getting your mortgage loan much easier. If you go ahead and meet with a lender, you can determine the loan payment that is right for you and you can look for new Grant homes that not only fit your lifestyle, but also fit your budget. The process of obtaining a mortgage loan can be a little daunting in today’s financial world, but meeting with the right mortgage lender can make the process so much easier and less complicated. Like choosing the right builder to build your new home, choosing the right mortgage company to finance it is a very important decision. Base your decision on reputation, stability and value and you can’t go wrong.