Mortgage Brokers Mortgage - Home Financing Made Easy | Page 6

Finding it Difficult to Approve Your Mortgage?
Learn What Lenders Consider Before
Approving Your Application!
Understand that lenders consider the ability to repay a mortgage in
different ways. They check your unique circumstances and pay attention to
your credit history to check if you have borrowed anything in the past and
repaid it too. Interestingly, you are likely to get your application approved if
you have taken a loan in the past and repaid it than never taking a loan in
the past. They want to know that you know how to manage mortgage
payments.
 At the same time, they are going to consider your capital. It means that
they want to ensure that you have accumulated some assets in the past
and that you have something to repay their loan if things do not go as
planned. They are also going to be quite concerned about collateral. In case,
you are looking for a mortgage, you will be offering your home as
collateral.
 Experts believe that lenders will always consider your 'capacity' before
they approve your application. Capacity, in this case, refers to 'debt
servicing'. It means that they will consider that your housing cost stays well
below 30% of your gross income. Along with capacity, they are also going
to count in your character before finalizing a decision. They will consider
the nature of your job and how well you have been managing things in
your workplace. They are likely to consider your current residence and the
duration of your stay in that location.
