Inventory is low in the current New York real estate market, and, as a buyer, you will want to set yourself apart from the other buyers. One of the ways that you can do that, is to show your prospective seller that you have your finances in order. Soon after signing the contract of sale, you will need to immediately apply for your mortgage loan which can be overwhelming. There are many documents and a lot of information that the bank or lending institution will request prior to granting your request for a loan. And, if you already own property and you are seeking to refinance, many of those documents are the same.
Jonathan Goldberg, a residential mortgage specialist with Sterling National Bank, met with me to share valuable information about what you need to have in order when applying for a mortgage or refinance an existing loan. He says that the three most important things that the bank will evaluate are your (1) Credit profile, (2) Capacity to repay the loan profile, and (3) Collateral profile of the property to be collateralized or refinance.
Aside from the obvious in terms of providing the correct spelling of your name, social security number and current residence address, Jonathan provided a detailed list of the financial documents that the lender will request to see when doing its evaluation and he also shared some surprising information such as:
• While credit scores range from 350 to 850, according to Jonathan, even those with a credit score as low as 640 would be considered for a loan
• While most loans are in the range of 80% to 90% of the property value, there is a loan that may permit as much as 96.5% financing
Also, you can visit www.annualcreditreport.com to get a headstart and get access to your credit report and credit profile from each of the three credit bureaus.
To hear the full interview with Jonathan Goldberg, click the play button below
To hear future broadcasts with many of our other professionals, please visit this page to sign up for your unique call-in information