Willow Grove PA Mortgage Lender

Before a lender approves a mortgage they must first determine if you, the buyer, can afford a loan large enough to pay for a house. In order to determine this they will ask you several different questions about your financial qualifications.

Below is how you can prepare for these questions so that you can easily qualify and increase your chances of approval.

Income Stability

Having an income that is going to continue to be stable for the life of the loan is what the lender will be determining here. In order to display this you should document a steady employment, a stable income and if you have a former spouse, alimony payments that are stable and will be for the foreseeable future. Bank statements, pay stubs or tax returns from the previous three years will provide the documentation the lender will need.

Your Bank Account Savings

A lender will also be interested in the amount of money you have set aside in your bank account should you encounter hardships. This assures them that whether you lose your job or incur unexpected medical expenses that you’ll still be able to continue to make your mortgage payment on time.

If you’re trying to qualify for a conventional mortgage you’ll be required to have 3-6 months’ worth of expenses set aside in your bank account. Another option is to have that same amount set aside in liquid assets. For proof of savings provide your lender with your bank statements, or balance statements from any other account you may be able to get money from if needed.

Origin of Payment for Down Payment and Closing Costs

Some lenders overlook if a down payment or closing costs come as a gift from a family member, friend or employer. Other lenders, however, prefer that the money used for these costs come straight from your bank account. It’s a good sign for them to see that from the beginning you’re able to handle larger amounts without assistance. For those lenders looking for evidence that the money in your account in fact came from your own funds you will need to show proof as to when the money was deposited. Otherwise a gift letter from the family member, friend or employer if the money is being gifted.

A mortgage lender wants to know that making contributions to you and your new home is a wise investment. The more proof you can offer that your financial situation is stable and will continue to be for the duration of the time you’ll be making payments on your home the better. Solid documentation on your steady income and ample cash reserves help to assure the lender that they’re making the right decision and that you’ll be able to pay the mortgage and any associated fees. The more assurances you can give them the easier the decision will be. For more information on how to you can be sufficiently qualified and to find out more about what lenders look for in mortgage applicants contact a qualified mortgage professional.

For more information on our mortgage program, please contact Bill Mervin Team.

Helpful local public sites in Willow Grove, PA:

• Willow Grove Township
• Willow Grove Chamber of Commerce
• Willow Grove School District