Wednesday, July 18, 2012

Ten Steps to Get a Great Mortgage…Approved!

Los Angeles, CA Mortgage Banker and Mortgage Broker Bill Rayman offers tips to get your mortgage approved.

With mortgage rates at historic lows and likely to stay that way for the next few months, you may be thinking that this would be a good time to buy a new home, a vacation home, a residential investment property, or to refinance existing mortgages you hold.  One thing can be said for certain: there has never been a better time to get a mortgage.  That is, if you can get one!  The news is full of reasons why you can’t.

Your frustration at being approved by a lender is shared among professionals in every part of the real estate industry.  Low prices on properties coupled with unbelievably low rates on loans should mean a robust market.  But by some analyses more than 50% of all loan applications are turned down. 

Here is the first of 10 practical steps you can take to optimize your chances for being approved.  Subscribe to this blog to receive automatic updates. 

1.      Income Clarity
Unlike the heady days of the 2000’s, today you will need to prove your income.  If you are employed, make sure that your employer is showing all income.  If you are receiving any income in the form of cash, gifts, barter or another form that do not show on your W-2, it would be far better to change it and place everything on the payroll.

If you own your own company, you may have some of the same issues as a wage earner.  If you are self-employed or a are a substantial owner of your company, you will need at least two years of history as well as current profit and loss statements.  As with the payroll issue, you will qualify for a better, higher mortgage if you choose to show excellent profits rather than using every possible way to reduce income to reduce your tax bill.   If you believe that your W-2 or business income can be improved with some changes in your methods, you may want to hold off on the mortgage for a few months until these changes are effective and clear.

There are other ways to boost income without altering your actual receipts or taxes.  For example, you might also be able to impute income from assets even though they do not provide actual income.  We can help you assess the potential to show such income on your application.

Call Bill Raymond for a free consultation.  310-295-6213
 

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