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The lender will review your personal
information in their decision to make the loan.
Your Credit information:
Using a credit report, the lender will review your credit history, and
credit score.
Your Income:
The lender will review your income from all sources to assure themselves
that you will be able to make the new mortgage payments.
Your Expenses:
Viewed in conjunction with your income, the lender is concerned that you
are not overly in debt.
Your Savings:
The amount of your savings is important. It shows your ability to live
within your means and accumulate savings and also that you have cash
reserves in case of illness etc.
The lender will also take the subject property into consideration. They
are concerned with the following.
The value of the property:
This is important as the property is the security for the loan. Should
the property be taken back in foreclosure they want to be assured that
the sale of the property will cover the loan.
The condition of the property:
The lender wants to be sure that the property is in good condition and is
habitable. It looks at items such as a termite report to establish this.
Public Records:
The lender looks at any public recordings that may affect the clear
title (ownership) of the property. The reason for this is that it may
affect the right to lend against the property in the position they seek.
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