How do Mortgage Company Determine the Capacity of the Borrower
In case, you were working on how much you could afford to borrow from the Best Mortgage Company, the lender would consider the following aspects:
The income aspect of the borrower would be inclusive of the following:
- Basic income of the borrower
- Income derived from investment or pension
- Income as financial support and child maintenance from ex-spouses
- Any other kinds of earnings you have from overtime, bonus, commission, freelance, or second job
You would also be required to provide the pay slips along with bank statements as proof of your income.
In event of you being self-employed, you would be required to provide the following:
- Business accounts
- Bank statements
- Details of paid income tax
The Best Mortgage Company would help you afford the right mortgage option suitable to your specific needs.
The Mortgage Company would also be determining your expenses for the month in order to determine whether you could pay the monthly payments or not. The company would consider the following options:
- Maintenance payments
- Credit card repayments
- Insurance payments
- Any other credit agreement or loan that you have
It would be pertinent that the lender would look forward to asking for estimates of your living costs inclusive of money spent on clothes, childcare, and general recreation.
They would also look forward to seeing few recent bank statements in order to back up the figures that you supply.
Future changes that may have huge effects
The lender would assess if you were able to pay your mortgage provided:
- Rate of interest increases
- Inability to work due to illness
- You and your partner lost their job
- Any event that changed your life
It would be imperative that you should think ahead of time and plan how you would like to meet the payments. For instance, you could assist in protecting yourself against the unexpected drops in the income by building up adequate savings when you have the opportunity.