Qualifying for an Mortgage Ohio Rate Refinance Loan

Before making an mortgage Ohio rate refinance loan, an Ohio lender spends from $500 to $800 putting together a package of documents for its underwriters and loan committee. Based on these documents and on a set of nationally accepted standards, the lender decides whether to approve the loan application.

As many as half of all mortgage Ohio rate refinance applicants fall in the gray area where loan approval decisions must be made. For example, first-time homebuyers will stretch their income to buy the largest home that they can afford. Before spending the $300 to $400 to apply for a mortgage, you should have a good idea whether you qualify for the loan amount that you -want. If you get turned down, you may lose your application fee and, worse, you may lose the opportunity to buy the house you want.

Even if you are seeking only to refinance an existing mortgage Ohio rate refinance, you could have trouble qualifying. Some of the nationally accepted qualification standards have changed in the past few years, and these changes may affect you. If your income has dropped since you got your last mortgage, you may have trouble refinancing, even with the same lender. If you have had any recent credit problems or if you have been delinquent on your current Ohio mortgage payments, this also may disqualify you.

If you have any doubts about your ability to qualify for a mortgage Ohio rate refinance in the amount that you want, this article tells you what you can do to help you qualify yourself.

Standards for a Mortgage Ohio Rate refinance

The majority of Ohio lenders today process and underwrite loans according to generally accepted national standards. These standards are dictated by Wall Street investors and government agencies who invest in mortgages or insure them against default. These investors are known as the secondary mortgage market. Knowing their standards will help you choose an mortgage Ohio rate refinance and an Ohio lender.

Within the context of these standards, an Ohio lender has some leeway to be lenient and flexible, or strict and even picayune. If, after reading through this chapter, you have concerns about qualifying for the loan amount that you want, shop for a lender that is flexible.

What does an Ohio lender look at before saying "yes" (or "no") to a mortgage Ohio rate refinance? The lender looks at the following:

• Each applicant's monthly income and expenses

• Each applicant's credit history

• Property appraisal

• Source of cash for down payment and settlement costs

• Each applicant's employment history

What Are Your Monthly Income and Expenses?

The first question that Ohio lenders must ask is "Can you afford the monthly payments on this mortgage Ohio rate refinance?" To find the answer, they examine your current income and expenses plus the cost of the new mortgage, and they apply mathematical formulas to see if you can afford the payments. Government loans (FHA/VA) and conventional loans use
different formulas.