Comments on: Qualifying for a Mortgage

By: Laura

Laura — Thu, 24 Sep 2009 02:10:02 +0000

I appreciate the feedback on your personal and professional mortgage experience. Sorry for the delay with my comments, I’m in training all this week. funny thing was that this topic came up during a break this week.

NCN, while we still have my student loan as debt, we had a similar experience. The lady was looking for credit card debt and car loans, but couldn’t find it. We explained we wanted to hold off on getting a house until we paid those debts off and save for a down payment. Apparently that made us a ’slam dunk’ to get approved (her words not mine).

By: Kirk Kinder

Kirk Kinder — Thu, 24 Sep 2009 01:29:34 +0000

You are right…the process is a good thing and will ensure a more stable housing market. I would add one caveat to your post in that people shouldn’t try to get the housing credit before it is gone. For one, the government will probably renew or even expand the credit due to lobbying efforts by the NAR and homebuilders. Second, if the credit is not renewed, then home prices will probably drop by more than the $8,000 credit so you end up in a better position as you save the $8,000 as well as the interest costs on that amount.

By: Kevin@OutOfYourRut

Kevin@OutOfYourRut — Tue, 22 Sep 2009 17:22:07 +0000

Laura–From a recently ‘retired’ mortgage guy, this is an excellent post. You’ve captured the most important elements of the process.

I’d like to add that to anyone who hasn’t applied for a mortgage in the past three years, the process has gotten more restrictive and requires far more documentation than it has in the recent past. Never assume that you know how the process works because of your previous experience. Much has changed, so be prepared to cooperate and to be patient. Not much is being allowed to slide anymore, even if you have a top credit score or a large down payment.

By: NCN

NCN — Tue, 22 Sep 2009 16:36:37 +0000

My wife and I recently, just to see what we would qualify for, consulted a local bank about a possible mortgage. With just our W-2 and a credit report, we easily qualified for FAR MORE than we would ever want to borrow. Since we are debt free, our debt-to-income level was kinda funny – The guy had to put $1 in as “debt” just so that the computer would return a number.

By: Darin H

Darin H — Tue, 22 Sep 2009 15:01:38 +0000

We’re in the midst of getting a new mortgage (moved from OR to FL) and it is quite a different process than it was the last time we got one 3.5 years ago. I don’t think we even dealt with the underwriters last time, this time, we’ve received 3 requests so far to verify information or to clear something up. Amazing considering that we are getting the mortgage through the same company as before, our loan is for $35,000 LESS, we’re putting down 70%, have over 750 credit scores each, have no CC debt and make more money. Crazy!

By: Ellen / Money Lounge

Ellen / Money Lounge — Tue, 22 Sep 2009 14:27:11 +0000

This is a really great guide, in terms of explaining these factors in a way that makes sense. These are all important things to consider before applying for a mortgage, to improve your qualifications AND to determine whether you are really ready to take on the responsibility that comes with a mortgage. It’s also helpful to know what factors go into interest rates, here’s a guide written in a similar tone detailing these factors: http://tiny.cc/arD4z. Also, I wanted to add that there are efforts in congress to extend and even expand the Tax Credit that is set to expire on November 30.