What does my Lender want from Me?
March 10, 2008 by Bob Schenkenberger · 1 Comment
A Mortgage lender looks for your overall financial picture. The main items of importance are current employment status, current income, and your ability to manage credit, as well as the amount and availability of a down payment.
In most cases the most recent two-year period of time is used as the primary focus on your ability to obtain a loan.
In particular;
VOD – Verification of Deposits. The lender will verify with your banking institutions the funds you state are available to close. In addition your bank statements are used to verify the amount of income you claim.
VOE – Verification of Employment. The lender will verify with your employer the facts of your employment as stated in your loan application.
VOR – Verification of Rent. The lender will verify with your current landlord or mortgage company the fact of you making your payments as agreed upon.
Another portion of your qualification for a mortgage are the ratios of your income to your monthly mortgage payment. There are two ratios that your lender will evaluate you on. First, the front-end ratio is the amount of your mortgage payment in relation to your gross monthly income. Second, is the back end ratio. The back end ratio is the amount of your mortgage payment in relation to your monthly income minus any monthly obligation you may have (car payment, credit card payment, student loans, alimony, child support, etc.) Different types of loans have different qualifying ratios involved. Typically FHA insured mortgages are 29% and 41% while conventional loans are 33% and 36%.
Please contact us if you would like to discuss this in greater detail. We would also be happy to refer you to one of our mortgage partners. These professionals will take care of you and we are happy to put our name to their reputation!
Bob has been an active REALTOR for 18 years. During this time, he has closed over 500 transactions, and has been the broker of record for 1000's more. Bob can be reached via email (bob@gethomedenver.com) or phone (303.770.1180.)
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Check out what others are saying about this post...[...] San Francisco Real Estate Blog by Luba, Your Local SF REALTOR wrote an interesting post today onHere’s a quick excerpt A Mortgage lender looks for your overall financial picture. The main items of importance are current employment status, current income, and your ability to manage credit, as well as the amount and availability of a down payment. In most cases the most recent two-year period of time is used as the primary focus on your ability to obtain a loan. When processing your loan application, the lender will obtain all of the necessary information and then verify this information for accuracy. In p [...]