A loan modification qualification is something that you need to do before your home loan can be considered for a change to the terms of your home loan. Here are some criteria that might help you in determining if a loan modification on your home is an option: 1) Loan modification qualification #1. Have you had any financial hardships that are making it difficult to continue to pay your mortgage on time?
A Home loan modification qualifications can use a number of options to achieve a new mortgage payment that is affordable and meets the banks guidelines for approval. This new modified payment is targeted to equal 38% of the homeowners gross monthly income. This new lower payment can be accomplished by one or more of the following options: Longer loan term up to 40 years
Reduction in interest rate
Principal forbearance whereby a portion of the current loan balance is deferred interest free
In rare instances, principal forgiveness
2) Home loan modification qualifications #2. Another factor in determining whether or not you qualify for a loan modification is the details of your current mortgage interest rate. Is your current mortgage interest adjustable and about to go up to the point that the new payment will be so high that you can no longer make it? Remember - people who took out ARM (adjustable rate mortgage) loans are now running into issues as their payments go up.
TIP: Make sure that you prepare your financial statement before you call your lender. Do not disclose any of your income or debts until you have taken the time to work on your budget-make any necessary adjustments and know that you fit into the approval guidelines. This is easy to do if you follow the directions in a handbook and software program that does all the calculations for you automatically. Simply input your own monthly income and monthly expenses and you will see immediately if you need to make some adjustments to your budget in order to meet the approval guidelines. You can avoid costly mistakes and save hours of frustration.
This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.
A Home loan modification qualifications can use a number of options to achieve a new mortgage payment that is affordable and meets the banks guidelines for approval. This new modified payment is targeted to equal 38% of the homeowners gross monthly income. This new lower payment can be accomplished by one or more of the following options: Longer loan term up to 40 years
Reduction in interest rate
Principal forbearance whereby a portion of the current loan balance is deferred interest free
In rare instances, principal forgiveness
2) Home loan modification qualifications #2. Another factor in determining whether or not you qualify for a loan modification is the details of your current mortgage interest rate. Is your current mortgage interest adjustable and about to go up to the point that the new payment will be so high that you can no longer make it? Remember - people who took out ARM (adjustable rate mortgage) loans are now running into issues as their payments go up.
TIP: Make sure that you prepare your financial statement before you call your lender. Do not disclose any of your income or debts until you have taken the time to work on your budget-make any necessary adjustments and know that you fit into the approval guidelines. This is easy to do if you follow the directions in a handbook and software program that does all the calculations for you automatically. Simply input your own monthly income and monthly expenses and you will see immediately if you need to make some adjustments to your budget in order to meet the approval guidelines. You can avoid costly mistakes and save hours of frustration.
This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.
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