Our Real Estate Blog
The process of applying for a mortgage is tedious and time-consuming; it requires you to answer personal questions about your finances. To ascertain your credibility for a mortgage, lenders structured the application process in such a way that allows them to get as much information about borrowers either directly or indirectly.
Before you decide to apply for a mortgage; it's best you familiarize yourself with some of the possible questions the lender would ask about your finances. Because it involves a considerable amount of money, you should be prepared to answer questions about disparities in your income, why you defaulted in making any accrued payments and questions about your credit history.
Below are some of the possible questions your lender would ask relating to your finances.
How long have you earned your present income?
Lenders want to ascertain if you have earned your present pay for over two years. If you just got promoted or got a salary raise recently, this is good. However, what most lenders are looking out for is a consistent income amount for the last year. If they are not sure of your income, they would take a look at your W-2s for previous years and your pay stub for the present year. Before you go ahead to make an offer for a house, ensure it's an amount your current income will support.
How often you get paid?
A lender wants to ascertain how much income you earn, how your pay is derived, and the steadiness of your salary or irregularity of income. If you receive a steady means of income, your annual salary would determine how much mortgage you get – if your income varies, you might be required to provide details.
The disparities in your income
If your income keeps changing each year either positively or negatively, come prepared to explain the reason behind the fluctuation. If your revenue decreased from the previous year, there is every possibility the underwriter would select the worst period in the last two years to determine how much you get on a mortgage. However, if your income increased in the previous year, the underwriter would take the average of the last two years to determine your mortgage value. If your income rises yearly either due to promotion or a new position, get someone from your human resource department to write a letter to that effect.
If you are new at your job
Being new at a job doesn't affect your application for getting a mortgage – as long as you are receiving either a salary or a full-time hourly rate. Some lenders even grant loans to individuals who haven't gotten their first paycheck if they have a fully executed employment contract.
If you earn commissions
If you are a salesperson who earns a commission, you would need to provide two full years of tax returns to determine non-reimbursed business expenses you wrote off.
Before applying for a mortgage, ensure you take a second look at all your finances and identified anything that could act as a deterrent so that your application has the best chance of being approved.
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If you plan to buy a house, you may want to host a yard sale sooner rather than later. That way, you can sell items you no longer need and won't have to worry about moving these items once you find a new residence.
Ultimately, there are many reasons why it may be beneficial to host a yard sale before you kick off the property buying journey. These reasons include:
1. You can earn extra cash.
Let's face it – purchasing a home can be expensive, regardless of where you decide to live. Fortunately, if you host a yard sale, you can earn extra cash that you may be able to use to cover assorted homebuying and moving expenses.
Whether it's the costs associated with moving supplies or the closing fees on a new home, expenses can add up quickly during the homebuying cycle. Thankfully, by hosting a yard sale, you can simultaneously cut down on unwanted items and earn cash from these items.
2. You can start packing.
As you separate items you want to keep from those you want to sell, you can start packing for your eventual move. Thus, hosting a yard sale may help you kick off the process of moving from one location to another.
Of course, as you start packing, you also may want to reach out to local moving companies. This will allow you to learn about local moving companies, find out their rates and determine whether a moving company is a viable option for your eventual move.
3. You can move one step closer to finding your dream home.
Hosting a yard sale provides a great opportunity to connect with community members and tell them about your plans to search for a new house. In some instances, community members may be able to help you accelerate your search for your dream residence too.
A yard sale may prove to be exceedingly valuable for an individual who wants to start a house search soon. And if you are ready to explore the local housing market following your yard sale, you may want to consult with a real estate agent.
Typically, a real estate agent streamlines all stages of the homebuying journey. He or she will help you pursue houses in your preferred cities and towns so you can find your dream home. Then, a real estate agent will ensure you can submit a competitive offer to purchase your ideal residence. If your homebuying proposal is accepted, a real estate agent next will help you finalize your home purchase.
A real estate agent is an expert resource throughout the homebuying journey. If a homebuyer has questions as he or she searches for the right house, a real estate agent can quickly respond to them.
Host a yard sale before you purchase a house – you'll be glad you did. Because if you host a successful yard sale, you can take the next step to find and buy your ideal home.
A significant opportunity to instill eco-friendly living habits in your children is by teaching them proper food consumption, storage, trash, and recycle-reuse practices. By understanding how best to manage their use of food your kids will be creating invaluable habits that will not only help the family now but will help them when they're stepping out into the world as adults. From building their savings to environmentally friendly and contentious living the time you take now to work with your children will translate to positive benefits throughout their life.
Starting with food usage demonstrate to them your routines. Teach them to not open new packages of food before the already open one is empty. Show them how to locate and understand expiration dates on food so they can help consume foods nearing their expiration date, so they don't go to waste. Leading by example create good habits of eating fresh fruits and vegetables daily, so they never go bad in the fridge and have to be thrown away. Develop their understanding of healthy nutrition habits and portioning. This helps prevent overeating, consuming too much of any one thing and will keep you from revisiting the grocery store every few days because your family is moving through the food you purchase too quickly. It doesn't hurt that it helps your own savings as well.
Make sure you keep enough reusable storage containers, storage bags, green bags and chip clips in your kitchen so your children can always put food away correctly to help it keep longer. Help them develop practices of closing containers all the way, rolling cereal and chip bags down all the way before closing the box or securing with a clip. Make sure they’re closing the lid on condiments, screwing tops down all the way and tightening beverage lids as far as possible. Most importantly instill the habit of minimizing the need to open and close the fridge and freezer and teaching your kids to make sure the doors are closed and sealed to further help with energy use.
Trash & Recycling:
When it comes to trash, you'll want to show your kids the proper way to separate trash and recycling and as they grow older begin teaching them any composting practices you use in your home. Help them understand what bottles and packages can be washed and reused instead of thrown out and have reusable water bottles and mugs at home they can use.
As your children age and can take on new responsibilities you can further teach them by having them help with shopping trips. They can learn how to put together meal ideas that use overlapping ingredients to help save on initial costs and prevent waste down the line.
There are countless opportunities to instill energy efficient living habits in your children. Start when they're young and continue developing these habits as they grow. You and your children will certainly benefit from these positive methods of living, and you'll be continuing to support your bottom line, your community, and the environment for years to come.