How to Increase Your Chances of Getting Approved for Mortgage Loan!

The Cold Hard Truth is this;  It's just not enough these days to only have One or Two of the 4 C's of Lending Criteria.  Times have Changed and Lenders have gone back to the Basics - Old School Guidelines and Loan Perameters.  You must have good to excellent credit and a steady job, as lenders are increasingly picky when it comes to loan approvals. Here's how to make the best impression.

Whether you're buying a home or refinancing an existing mortgage loan, you'll soon find out that lenders today are a picky and demanding bunch when it comes to loan approvals.  Even well-qualified borrowers are expected to jump through some pretty high hoops to qualify for financing.

But fear not: These tips and suggestions can help you make the best possible impression on the lender of your choice.

Just as job hunters may wonder what top employers want to see on a resume, prospective borrowers may be curious about what lenders look for on a loan application.

>>>>>>>The four C's

The answer may be summed up with a mnemonic called "The four C's," according to Greg Gwizdz, national sales manager for Wells Fargo Home Mortgage in Des Moines, Iowa.

1. Capacity, which refers to the adequacy of the borrower's income to cover the interest and principal due on the loan, plus property taxes and homeowners insurance.
2. Character, which refers to the borrower's track record of paying debts, as evidenced by his or her credit history and credit score.
3. Capital, which refers to the borrower's down payment (or equity) as a percentage of the current value of the home.
4. Collateral, which refers to the safety and soundness of the home and the value of the home as determined by an appraisal relative to the agreed-upon purchase price.

Neither a high income nor an exemplary credit report alone is enough to make your loan application stand out. What lenders like to see is strength and stability in all four areas.

"If you're strong in all four corners, you're chair is sturdy and strong;  "That's pretty stable.  In theory, I can take away one of the corners -- maybe your credit score has some dings or you need a stated-income loan -- but the other corners are still pretty solid, so you have a tripod. That's not as stable as a chair, but it will still stand up. If you take away another corner, you have a ladder. Ladders don't work anymore."

Borrowers who are qualified but whose down payment will be less than 20% of the purchase price of the home must withstand a second level of scrutiny. That's because mortgage insurers also have to approve such loans, and they have "completely different qualification ratios,"  Borrowers in this situation should discuss their options with a loan advisor at Pinnacle Mortgage Group and let them explain these guidelines to you in greater detail to give your the ammo you'll need to better familiarize with lenders' and insurers' guidelines to Increase Your Chances of Getting Approved for a New Mortgage!

Get the latest mortgage rates as well as A dozen ways to get Down Payment Assistance in Free Reports on our Website.  click on the links in the Banner at top or below.


Have your Application and supporting paperwork in order

Lenders rely not on the borrower's say-so but on a pile of paperwork to verify and document the borrower's financial position. At a minimum, most borrowers are required to submit the following:

• Completed and filled in all applicable sections of the Loan App.
• All Initial Disclosures and Authorizations
• Copies of  one month of current paycheck stubs
• Two years of W-2 forms (1040's if Self-Employed.).
• Three to 6  months of bank account (all accounts including IRA's, 401k's, etc.) statements.

Apply for a Low Rate Mortgage Online with Pinnacle Mortgage & Realty Group in Anaheim CA .  Since 1986, we've been helping folks just like you with the knowledge, and expertise the borrower Needs in this current market.

You Cannot Afford to Waste Valuable Time, with a lesser experienced Mortgage Co.  You Need a Broker with a Proven Track Record. One that has been there through Two Previously Market Down-Turns, gaining valuable Knowledge that is put to the test in our current down market.  Down market Yes, but that means Opportunity for You with Low Housing Prices and still low rates (but they are trending upward)!.    We Are Lending in Major Metro Areas in the Entire Golden State of CA!     

Call us Today at (800) 564-1500 for a No Cost/No Obligation, FREE Mortgage Analysis with Pre-Qualification.   Or you may visit us on the web at www.LowRatesOnline.net,  where you will find Current Rate Sheet, Credit Improvement Tools/Advice, and a 128-bit Encrypted Totally Secure Online Loan Application to Get Started Today!!