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Get a Home Loan Here and Save!

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HIGHLIGHTS
  • Understand that you will be judged on your debt-to-income ratio and your credit, when you apply for a loan.
  • Check your credit report for errors, before you start the application process.
  • Shop around to find the best mortgage rate.

Start here to solve all of your home loan and mortgage needs.

Looking for a Home Loan?

It takes time to find, apply, and qualify for a home loan that fits your needs. You need to get your finances in order, find the right home loan that has a manageable interest rate and fees, apply, and then go through the steps required to qualify . It is a long process, but the end result is definitely worth the effort to get the home and home loan that is right for you.

Typically, there are several considerations when getting a loan — three of the most important are your:

  1. Loan-to-value;
  2. Debt-to-income ratio; and
  3. Credit rating.

I will review each one in turn, focusing on your specific situation.

Qualifying for a Loan

There are three main areas that any lender will want to examine, before approving you for a loan.

  • Loan to value: This is calculation looking at how much you want to borrow, relative to the value of the home. For a purchase loan, it is directly impacted by the amount of money that you can put down on your new home. The larger the down payment, relative to the value of the home, the less risk the lender has to take in extending to you a loan. In a refinance, the amount of equity you have in your home is the key factor.
  • Debt to Income: This ratio looks at your monthly debt obligations (payments of interest and principal) as a percentage of your monthly income. If you have a significant amount of debt, your debt service burden may be too high for a lender to comfortably give you a loan. You need to either increase your income, or cut your debts. Sometimes, in a cash-out refinance, the lender will only lend you the money if some of the money is targeted to pay off debt you have.
  • Credit Rating: Your loan, including terms like interest rate and points, will depend on your credit worthiness. One measure of credit quality is a credit score (sometimes a specific FICO score). Your credit rating is calculated based on several variables, including: your payment history (do you have any late payments, charge-offs, etc.), the amount and type of debt that you owe, if you have maxed out any of your trade lines, and then several other secondary factors like the length of your credit history and how many recent inquiries have been made to look at your credit history. If you have a good credit score, you will get a better loan. Take the time to know your credit rating. View copies of your credit report from the three main credit reporting agencies: Experian, Equifax, and TransUnion. Check the reports for errors. You can get a free credit report from each of the three bureaus by visiting AnnualCreditReport. You don't want to be penalized for an incorrect reason. If there is an error on your report, make sure to dispute it, as it could damage your credit score and result in a higher interest rate and higher fees for the loan.

Types of Loans

There are many different loans available today, so it pays for you to know what different kinds of loans are available. To make the best choice of loan programs, there are three important factors for you to consider:

  • How much can you afford to pay each month?
  • Are you in a secure job and a stable financial position, so that you are confident you can meet the serious obligation you are about to enter?
  • How long do you plan to stay in the house you are purchasing?

Most importantly, make sure that your mortgage meets your financial and personal goals.

Fortunately, the Bills.com team has put together the tools, tips and pre-approved home loan lender list that can help you get the home loan that fits your needs. If you are ready, apply to get home loan quotes delivered right to you.

With Bills.com, qualifying for a great home loan is a breeze. We offer comprehensive home loan guides, tips, advice, and even a Home Loans Savings Center, to get you the best deal on a loan. Whether you are a pro seeking the best home loan terms, or a novice looking for your first home loan, Bills.com is your answer.

Comments (2)


Natalia S.
Pearland, TX  |  January 14, 2012
My husband was forced to move out from my house due to all kinds of ugly actions. We are not divorced, we have not even filed a petition for divorce yet. However, he has applied for the mortgage loan (through USAA) stating that he is single without even notifying me. We live in TX, in the community state. How does that affect his loan and my financial status?
Bills.com
January 15, 2012
Anyone making a loan application is required to provide full and accurate information. A standard application will inform the borrower that the failure to provide true information can result in civil and/or criminal penalties. One step you can take is to inform the mortgage bank of the correct information, and that you are not interested in taking a loan or providing information about yourself on a loan application.

Consult with a lawyer who has family law experience immediately. You mentioned Texas. Texas is a community property state, and as such, spouses have liability for each other's debts. What I just wrote is a bit of an over-simplification of community property law, but not too much to help you understand the gravity of your potential liability for your spouse's actions. Consult with a family lawyer now.
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