This communication is provided to you for informational purposes only and should not be relied upon by you. Northland Realty is not a mortgage lender. You should contact a lender of your choosing directly to learn more about its mortgage products and your eligibility for such products.
Your Employment History - A consistent history of employment in the same line of work is considered ideal. "Job-hopping" is not looked upon favorably because it may lead to unstable income. However, if you have switched jobs within the same line of work for advancement in that work, there should be no problem. If you are relocating with a Fortune 500 company your lender may be able to consider a portion of your spouses projected income, even if your spouse has riot yet secured employment in the new location.
Your Income - Your lender will look carefully at your capacity to pay the loan. Your job stability and gross income (in relation to your experience) are critical in this regard.
Your Credit History - Your credit history is an indication of your "character" or willingness to repay the loan. Your lender will look closely at your credit report, which is obtained at credit application by the loan officer. Any consistent patterns of late payments, collections, etc., are not looked at favorably. Your loan officer will discuss your credit report with you and can even give you a copy for your review.
Your Assets - The money you have available for the down payment, closing costs, cash reserves (monies left over after closing to cover 2-3 months of mortgage payments) and other liquid assets you have available. The lender will need to see the source of funds (where your down payment and reserves are coming from). Prior to closing, do not move your money around (pay off bills, get a gift, move from one accountant to another) without first consulting your loan officer. This can confuse the process and may delay closing.
Your Debts - Your lender is concerned with the amount of debt you have because it affects your qualification and your ability to repay the loan. Excessive use of credit may be a concern.
The Property - Because the property is the lender's "collateral" for the loan, the value, marketability and condition of the property are extremely important. The appraisal is reviewed for this information. If the appraisal is not acceptable, your loan approval (which is always contingent on a satisfactory appraisal) will be withdrawn.