With so many loan options available these days, it’s crucial to find the loan that’s right for you. Some of them may sound familiar: FHA, Rural Development, Montana Board of Housing, Conventional Loan… The list goes on.
The best strategy is to meet with an Altana loan officer and learn about the home loan process before you start looking for a house.
Lenders size up loan applicants on whether or not they are reasonable credit risks. In other words, will an applicant fulfill a debt obligation or fall behind on payments and eventually default? Factors that can derail a mortgage application include a debt-to-income ratio above 35%, less than two years of employment history, nonpayment of bills, and request to purchase property that’s depreciating.
These “Three C’s” are the traditional acid test for creditworthiness:
– Capacity. Do you have the income to repay the debt? Lenders review employment history, gross monthly income, housing expenses, and outstanding debt.
– Character. How much debt do you already owe, do you pay your bills on time, and are you able to live within your means? Lenders also want proof of stability–how long you’ve lived at the same address and held your present job.
– Collateral. Is the property structurally sound or a sagging shack that’ll undermine your ability to repay the mortgage? A licensed appraiser helps make this determination.
However, we at Altana understand there’s more that can affect credit scores than meets the eye. That’s why we sometimes consider other factors in the case of low-scoring applications. We also may find situations that override a less-than-ideal score to find the loan that’s right for you.
So let’s dig in together. We’ll have you saying, “I’m coming home!’ in no time.
Call us at 406-651-2328 or stop in at any of our branches to talk about your options.
