(2) Source Of Income
It is one of the most important factors to know before applying for mortgage. You should have a stable & steady source of income in order to qualify for a mortgage.
This steady source of income can be derived either from alimony payments, child support, stock dividends and even tips.
Self-employed or entrepreneurs may face difficulties to be qualified for a mortgage. It is because their irregular income is often considered as highly risky option by lenders.
However, if you are maintaining a prime credit score as well as a large amount of savings then you will be considered as less risky option by lenders.
(3) Debt-To-Income Ratio
It is one of the most common factors to know before applying for mortgage. A debt-to-income ratio of 28/36 is often considered as a qualifying ratio for a candidate to get claims on property.
Here, 28 % stands for the amount of pre-tax gross income that is allowed for your monthly expenses on your house such as principle interest payments as well as homeowners insurance.
Whereas, 36 % stands for the amount of your income that can be utilized for housing expenses as well as recurring bills such as auto loans or credit card payments.
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