How do I Know if I can Apply for a Mortgage?

Many factors come into play once you decide you are ready to take the next step: applying for the mortgage. It sounds really scary to one who has not ever had any experience with owning their own home. With a knowledgeable lender who can lead you each step of the way there really is nothing to worry about at all! A few things that will need to be looked at. The lender will want to see financial stability. A potential lender will look for steady employment, with a single employer for the past two years or at least employment in the same field. Your credit history and if you have any late note payments will also be a factor. Lenders pay particular attention to any rent or mortgage payments that were more than 30 days past due. They will also look into your current bank statements. In order to qualify for a mortgage, most lenders require that you have a debt-to-income ratio of 28/36. This means that no more than 28 percent of your total monthly income (from all sources and before taxes) can go toward housing, and no more than 36 percent of your monthly income can go toward your total monthly debt (this includes your mortgage payment). Lenders will ask you to provide some of the following information as well: Your current credit report. Pay stubs for the past 30 days. W-2 forms for the past two years. Information about debt obligations, including car loans, student loans, tax liabilities, liens (including federal tax liens), bankruptcies, etc. Recent statements from your checking, savings, mutual fund or other accounts. Tax returns for the past two years if you're self-employed. Proof of any supplemental income. Records of any negative credit accounts that have been paid off. Records of child support or alimony if applicable. At Texas Premier Mortgage, we are here to assist you with every step of the process. Contact Steve Head

today at 281-627-4222 to help you begin your journey to purchasing your next home!