What criteria do lenders use when approving a loan?
With all loans whether you are financing or refinancing your manufactured home we look at three criteria: Capacity (can you afford it), Credit (do you pay your bills on time) and Collateral (your homes value). Can I have my payment automatically withdrawn from my bank account? Yes, this can be set up after your loan has funded and you have made your first payment. How much documentation will I need to supply to verify the information I provided on my application? Every situation is different. Once you submit your loan application and have been approved you’ll receive a customized list of documents you’ll need to provide. Income and job time verification are required. How can a shorter term save me money on a Fixed-Rate Mortgage? By opting for a shorter term, you can save thousands of dollars in interest – not only because you’ll be paying off the loan sooner, but lenders generally offer better interest rates on shorter-term loans.
Lenders look at three criteria: debt ratio, loan to value, and credit. • Debt Ratio – The lender will weigh your housing expenses and total debt against your monthly income to determine your ability to repay a loan. Also, if you are purchasing a home, they’ll also need proof that you have the cash available for downpayment and closing costs by verifying funds from sources such as bank accounts, stocks, bonds, mutual funds, sale of an existing home, or gifts from family members. • Loan To Value – When you ask for a home loan, you’re putting the home itself up for collateral, so the lender will want to know what the home is worth. • Credit – To determine your credit risk, the lender will look at previous mortgage payment history, rent payment history, credit card use, and installment debt payment history. If you pay your bills regularly and on time, you are demonstrating the integrity that lenders are looking for in a borrower.
Lenders look at three criteria: Capacity, Credit and Collateral. CAPACITY The lender will weigh your housing expenses and total debt against your monthly income to determine your ability to repay a loan. Theyll also need proof that you have the cash available for down payment and closing costs by verifying funds from sources such as bank accounts, stocks, bonds, mutual funds, sale of an existing home, or gifts from family members. CREDIT To determine your credit risk, the lender will look at previous mortgage payment history, rent payment history, credit card use and installment debt payment history. If you pay your bills regularly and on time, youre demonstrating the integrity that lenders are looking for in a borrower. COLLATERAL When you ask for a home loan, youre putting the home itself up for collateral, so the lender will want to know what the home is worth.
