Plano Real EstateAre you thinking about buying a new Plano home? If you’re going to apply for a home loan, you can rest assured that your lender will be checking in to your credit history, income and other items in order to assess your ability to manage and repay this debt.

However, there also quite a few variables that they won’t inspect during the due diligence process. In today’s post we’ll look at 5 factors that a lender or Plano mortgage underwriter won’t consider when assessing your suitability for a mortgage loan.

Your Family Status

It’s against the law for lenders to make any special considerations as to your family status, whatever it might be. Both the Fair Housing Act and the Equal Credit Opportunity Act protect you from discrimination in regards to your family status.

Your Age or Race

Similarly, lenders cannot factor in your age or your race when assessing your suitability for a mortgage loan. Whether you’re a first-time homebuyer who has just graduated from college or a retiree looking to purchase that dream condo on the beach, age will not be a factor in your Plano Home mortgage application.

Shopping Around with Other LendersPlano mortgage rates

While you might have heard that checking your credit too often can cause issues with your credit score, this isn’t the case when shopping around with multiple mortgage providers. Plano Mortgage Rates.

Only the first “hard inquiry” on your credit by a mortgage lender in a two-week period will count against your score; after this, the credit agencies will assume that you’re doing comparison shopping with other providers and avoid factoring these checks in.

Unemployment and Other Unstable Income Sources

If you have sources of income that are deemed irregular or unstable, such as a small side business or unemployment income, it’s a safe bet that these will Plano Home Loansnot be considered as income when your mortgage application is assessed. As the typical mortgage loan is repaid back over 10 to 20 years, lenders and underwriters are looking for stability in your ability to pay.

Any Non-Borrower’s Income

While it can certainly be helpful to have a spouse or other family member include their income along with yours to prove your repayment ability, unless they are listed on the loan as a co-borrower their income will not be counted.

If you have other questions, be sure to contact Warren Whitaker @ 972.523.8353 as he can be an excellent source of quality information and expertise.

Resources

What do lenders look for on loan applications?

Managing Debt

What Credit Score Do I Need to Get a Mortgage?

Your Step-by-Step Mortgage Guide

Thinking About Buying a Home?

 

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