With the recent tightening of mortgage requirements by lenders, it is more important than ever to make sure you are able to document your income when seeking a mortgage. For homebuyers in the Desert Ridge area, the competition for available homes means that buyers have to be ready to present an offer and qualify for a mortgage before another buyer. When documenting your income for mortgage purposes you must be able to prove your income is stable as well as account for any down payment origins. Recent college graduates, individuals who have changed career paths recently or those who are self-employed may have a more difficult time attaining a mortgage regardless of actual income.
One of the first places to start when documenting your income is to ensure that your total housing expenses should not exceed 28 percent of your overall income. If a car loan or additional expense is added, the number rises to 36 percent, but potential homebuyers should expect to keep their expenses low when applying for a mortgage. Most lenders require documentation including two years of previous tax statements. Any lender looks for two years of statements before a loan is issued. If you are self-employed you will have to document the past two years of income as well as a profit and loss statement for your business. These days lenders are all about making sure that the customers whose loans are approved are in the best position to keep those loans in good standing.
Lastly, if the funds you choose to use for a down payment come from another source, you may be required to prove the funds were a gift or that you are not obligated to repay them. The selling of a large ticket item should be documented and included to support where the funds originated. Buyers in the Desert Ridge area can place themselves in the best position possible to purchase their dream home by ensuring the proper documentation is in place when seeking a mortgage.