Scottsdale Real Estate - Phoenix Real Estate
Arizona Relocation - Mortgage Process
Understanding the Mortgage process
Questions to expect from mortgage lenders |
Employment and income |
• | Where do you work? |
• | How much do you make? |
• | How long have you been at your job? |
• | How is your income derived -- steady salary or irregular income? |
• | If it's the latter, you may need to provide more details to obtain a favorable interest rate. |
Outstanding debts |
• | What recurring debts do you have? |
• | How much do you pay a month for auto loans? |
• | Credit cards? |
• | How much of your monthly pretax income do these debts consume? |
Cash reserves and assets |
• | How much money do you have in the bank? |
• | How much will be left after you pay your down payment and closing costs? |
Down payment |
• | How much money are you putting down? |
• | Is this your own money? |
• | If not, is it a gift from your parents? |
• | A nonprofit agency grant? |
Loan purpose |
• | Is this mortgage for a home buy or refinance? |
• | If it's a refinance, do you want to take cash out at closing to pay off other debts? |
• | If so, how much? |
Property use |
• | Do you plan to live in the house? |
• | Is it investment property? |
Property type |
• | A condominium? |
• | A duplex? |
The following responses tend to work in your favor: |
• | Steady employment (two or more years) with the same employer or in same line of work. |
• | Low debt: no recent major buys (such as automobiles) and a debt-to-income ratio of 36 percent or less. |
• | Loan is for straight home purchase (or rate-and-term refinance). |
• | Property is detached single-family home to be used as primary residence. |
• | Down payment of at least 5 percent of sales price with your own money. |
• | You'll have at least two months' worth of mortgage payments in the bank after closing. |
These responses tend to work against you: |
• | Self-employed or contract worker. |
• | High debt: credit cards maxed out, total debt-to-income ratio more than 36 percent. |
• | Property is a duplex or condominium, to be used as a vacation home or rental. |
• | No cash left after home buy and closing costs. |
• | Down payment is 3 percent or less of buy price and money is borrowed |
For additional information regarding Arizona Relocation,
please send direct e-mail request to GaryandClaudia@cox.net
or call our Toll Free Number
866-464-2140
