Honolulu Mortgage Stars

People get really anxious when trying things unfamiliar to them.  Such anxious feeling can be experienced when applying for a totally new job.  And when you apply for a mortgage loan, it is quite common to feel very nervous about the entire application process. 

Do not get too anxious though because most homebuyers, even those who have previously applied for home loans, also get nervous during the application process.  They usually get nervous because they think that qualifying for a new loan would be difficult.  You will probably experience some anxious moments especially if you do not know what mortgage lenders are looking for.  

So the key to have an easier time during the mortgage loan application process is to know what lenders would be looking for.  Knowing right information that you need to provide will make the process a bit less stressful.  

Four Crucial Points Lenders Always Consider

There are four key points that all mortgage lenders consider during the loan application process.  These are property information, income history, assets, and credit score.  These four factors are considered in the industry as the four major pillars that all home mortgages are built.  

As a golden rule, most lenders would want you to have good scores on all four aspects.  However, they are not really expecting you to get superiorly excellent scores on all fronts.  Lenders know that there are so many economic factors that can affect your ratings.  

First of all, all mortgage lenders will require you to produce documentations on these four areas.  So you have to submit your pay stubs or income history, W-2 for at least two years, and banking statement for the past three months.  You will also be required to submit other relevant documents that may include bankruptcy information, divorce papers if you have one, and certification of self-employment if you are self-employed.  You need to prepare these documents and submit them promptly to your lender so that your application can be processed immediately.  

How to Avoid a Denial 

There are several simple ways to avoid an outright denial of your mortgage loan application.  First, you have to give all the information and documents required by the lender.  Never indicate a protest whenever you get a request from the lender to get more information.  

As much as possible, do not apply for new credit cards during the mortgage loan application process.  And never rack up new debts because these could result to outright disapproval of your application.  It is also not the best time to get a new job.  Wait for the loan to close before you look for new employers.  Lastly, make sure that you are only applying for a loan that you can easily afford.  Never get a loan that is way beyond your capacity to pay so that you can get an easy approval from your lender.  

New home buyers can get nervous when applying for mortgage.  Such nervousness is quite normal especially if you do not know what lenders are looking for.  You can enjoy a hassle-free loan application as long as you know what will be required of you by mortgage lenders.