Before listing them all, I just want to comment on the importance of precedent. What you do in your life, financially and professionally, matters. Try to strive to improve in the areas you know you falter in.
Loan Approval Precedent
Disapproval of past loans stay on your history and will weigh into the decision of future loans. This does not mean if you were denied you will be again, but in the complex picture, it will play a role.
Lack of Full Documentation
Required documents are just that… required. The lender has a huge choice in their hands and little errors like forgetting documents will raise doubts about the honesty of the paperwork. Be transparent and fully disclose all needed documents.
One of the most important numerical decision factors is your credit score. Again, this number establishes precedent. How you have handled your monetary responsibilities in the past is a strong indication of how you will handle them in the future.
Monthly income is used to evaluate your fiscal ability. Frequently shifting jobs, demotions, or a high incidence of being fired will paint the picture of an unstable candidate.
We all have a baseline income. Where that money goes has a steady pattern. Expenditures and rate of saving develop a portfolio on what you prioritize. One common mistake made by those applying for a loan is the purchase of a large dollar item after applying for the loan. This instantly reduces you ability to quickly pay back the loan and to the lenders, the risk may seem too high.
The listing you pick to be your home is evaluated just as the applicant is. The house must be legal by all standards for the investment to even be considered.
Avoid the possible mistakes and try to find solutions for the issues that might lead to disapproval. Devote good amount of time and take professional help to prepare your home loan application.
406.570.5730-call me, Real Estate Professional Broker Tim Hart, if you have more questions or need assistance in purchasing a home.