mortgage lender in tacoma, wa

Questions To Expect from Your Mortgage Lender in Tacoma, WA

If you were a mortgage lender in Tacoma, WA, what would you want and need to know about a borrower before giving them a loan? The questions that come to mind are the questions that you should expect from your mortgage lender in Tacoma, WA. These questions will cover credit history, income, debts, assets and employment.

Questions To Expect from Your Mortgage Lender in Tacoma, WA

Employment

-Where do you work?

-How much do you make?

-How long have you been at this job?

-How is your income derived?

Your mortgage lender in Tacoma, WA wants you to prove steady employment (more than 2 years), with the same employer or in the same line of work. Being self-employed or a contract worker can complicate your application. If you are self-employed but own less than 20% of the company, it’s simpler to manage than if you own over 20%.

Debt

-What recurring debt do you have?

-Have much do you pay a month for auto loans and credit cards?

If your debt payments account for 35% or less of pretax income and you haven’t made a big purchase lately, it works in your favor. If your credit cards are maxed out and your debt is a large percentage of your income, it can complicate your application. In other words, steer clear of large purchases like buying a car, appliances, or electronics before applying to a loan as it can complicate and slow the process down.

Assets

-How much money do you have in the bank?

-Have much do you have saved in stocks, bonds, and other assets?

Your mortgage lender in Tacoma, WA wants to make sure you have enough saved up to pay at least two months’ worth of mortgage payments. They want to be confident that you will be able to make recurring monthly mortgage payments.

Down payment

-Where will your down payment money come from?

-Are you receiving gift funds or a grant?

If you receive gift funds from a relative or friend, it’s ok but it will complicate the process a little bit. The person gifting you’re the funds needs to fill out a gift fund document stating that this indeed was agreed upon and that they aren’t requiring the money to be paid back. On the flip side, if you’re using savings from equity form a previous home, or are paying over 20% from your bank account, it works in your favor.

Loan purpose

-Are you borrowing to buy a home or to refinance the current mortgage?

-If refinancing, do you want to take cash out at closing?

If the loan is for a simple home purchase or a simple rate and term refinance, it’s in your favor as a prospective home buyer. If you’re getting cash out when you refinance, it could complicate the process. An example of this would be if you had 100K in equity and you only wanted to put 60K of it back into the loan, and take 40K out, it could take a bit longer and complicate things on the application.

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