THE MORTGAGE APPLICATION PROCESS… PREPARING YOUR FINANCES
A mortgage application requires several steps and there are different routes you can take, depending on which type of mortgage you wish to obtain.
PREPARING YOUR FINANCES
Lenders want to see that you’re financially prepared to obtain a mortgage and pay it back over time. They’ll want to look at all sources of income, your job history, self-employment income, and your credit history. If you’re self-employed, they’ll want to see copies of your last two tax returns to show consistent income. They require this to make sure you have an acceptable debt-to-income ratio. Generally, lenders like to see a debt-to-income ratio lower than 43%.
John Castelli, Realtor