If you're selling your Calgary auto body shop to finance your move to Riverside, California, you really want to make sure that you have a smooth transition. The biggest part of any move is always finding your new home. You were approved by the mortgage lenders back in Calgary for a home loan, but will their Riverside compatriots do the same? If you're rejected it could ruin your future plans. To help keep this from happening, we've made this guide to what banks look for.
Income
The biggest factor that private lenders for mortgages are going to be looking for in Riverside or in anywhere else is whether or not you have an income that will allow you to make your mortgage payments. Even someone with a large income can be denied for a mortgage if he tries to apply for one that is too large for his income to pay off. To stay within the optimal approval zone, don't choose a house where the monthly payments will be more than 30% of your combined incomes.
Down Payment
Banks need to know that you're serious about buying this home, so they'll want you to contribute a portion of the price of the home. This is called a down payment. There are some lenders that will give you a mortgage without one, but most like to see that you have saved up at least 15% or 20% of the purchase price. To get your down payment, you can sell your supplies for catering in Toronto Ontario, sell your old home, win the lottery, or save up, as long as you have it and it's not a loan from somewhere else.
Stability
Though your current job matters most, the bank will also look at your employment history and bank records from when you and your spouse lived in separate London, Ontario houses. If you've moved jobs a lot, repeatedly closed out bank accounts and opened new ones, or switched between credit cards a lot, the bank might not trust you to stick with your mortgage if they give you one.
Credit Rating
The bank will also look up your credit rating, which is based on all the loans you've every had - on your homes in the Hudson Valley, on your cars, on your credit cards, even on your cell phone plan - and whether you've paid all your bills on time. Check your own rating first to see if you'll be a good risk for a bank or not.
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