What You Need Know about Getting a Mortgage
When people have to make a choice between renting a home and owning a home, some people choose the renting option because it has some positive attributes. It is important for people to note as well as appreciate that one of the gains of renting the home is that any maintenance in the home is done by the owner of the home. The ability of a person to live in a place of their choice at any time is another gain of renting. Even though owning a home is very difficult in most parts of the world, there are still very many people who would love to own homes as opposed to renting homes.
It is important for people to note as well as appreciate that there are a variety of means which could be used to enable people to own homes.One of the methods that could be used to enable people to buy homes is that of obtaining a mortgage. Some set of factors have to be looked into before people are given the mortgages to enable them purchase the homes. Highlighting the criteria that determines if one is to get the mortgage or not is the main objective of this article.
It is important to note that one of the determining factors that must be adhered to before getting mortgage is that of assessing ones income. The lenders will have to ask proof of the amount of income that you earn.It is important to note that if there is a probability that a person does not have the pay stubs, they will have to request their employer to provide the paystubs. Using the most recent tax returns is the kind of evidence that is supposed to be produced by the persons who are not employed.However, it is important to note that the provision of using tax returns for the self-employed depends on the type of lender and is not uniform
The credit history of the borrower is also very important for people to access before giving the mortgages to the people who want to buy homes. Accessing ones credit history implies that the borrower is assessed on his performance of repaying previous credit so as to determine if they have the capacity to repay the mortgage loan. Prior to a mortgage application, it is very important for people to check online about their credit score.
It is important to note that the other factor that is interrogated before giving mortgages is the down payment. It is important to note that the role played by down payment is that of it being the collateral. A person is bound to reap very many benefits by paying a high amount of down payment on their mortgages.