Even after you’ve been pre-approved for a Kansas City home loan, you are not guaranteed a loan for the property you settle on afterward. The full home loan process requires an in-depth assessment of both the property’s credentials and your qualifications.
This assessment is usually carried out by the lender or lending company’s underwriter, who follows the lender’s unique guidelines for full approval. While guidelines vary, they typically cover three major qualities, including your:
Much like the pre-approval process, the Kansas City home loan approval process looks at your income and debt-to-income ratio to ensure you are able to pay back the money you borrow. However, since the 2007 housing bubble burst, the government requires that all qualified mortgages also use your savings, bonds, and employment history to determine if you qualify. For instance, you must be consistently employed for the last two years in order to be approved for a Kansas City home loan.
To prove that you are willing to pay the large amount of money borrowed for your new home, you must have a good credit history. By showing you have willingly paid off other loans, you are a more trustworthy candidate for a Kansas City home loan.
If your credit score or history does not currently qualify you for the home loan you want, there are steps you can take to improve your standing. With the exception of medical bills, it’s important to take care of all collections or judgments on your credit report in order to attain a Kansas City home loan.
Lastly, if you are not a first-time homebuyer, another useful sign that you are willing to pay is having accumulated enough home equity in your previous properties.
In the event that you foreclose on your Kansas City home loan, your home will be used as collateral. Therefore, your lender must make sure the value of thevproperty you choose does not exceed or fall behind the amount of money you wish to borrow.
Putting a home into a trust may seem like an option reserved for older homeowners who have paid off their mortgage and have accumulated an estate, including assets such as a home, motor vehicles, various investments, boats, rental properties, furniture and even a vacation home. However, having a home that’s owned outright is not necessary […]
The start of a new year is often seen as the time to make major changes in life. While many people resolve to start hitting the gym, losing weight, reading more, or making a career change, others may decide to buy a new home in the coming months. That’s a great goal, one that can […]
Buying a home is one of the most exciting events in a person’s life. A new home can mean a new direction, a major step forward, the beginning of a family or just a fun opportunity to live in a new state, city or neighborhood. It’s also a complex task that involves several important steps. […]
