When you are looking to apply for a mortgage loan in Monroe, Louisiana at Century Next Bank or elsewhere, there are specific factors you and the lenders will consider to determine whether they will be able to provide you with the mortgage loan you seek or not. Learn the important factors that are considered when applying for a mortgage loan below.
Loan Terms
Carefully consider what type of mortgage loan in Monroe, Louisiana that you want to apply for. There are some loans that have a 30-year term, while others have a 15-year term. The 30-year-term loan will allow you to pay lower monthly payments for a longer period of time, but that also means you will pay more interest due to the longer period of the loan. Conversely, if you apply for a 15-year term, you will pay larger monthly payments over a shorter period of time. Due to that shorter period of time, your interest payments will also be lower.
Debt-to-Income Ratio (DTI)
Lenders will carefully assess your DTI as part of the loan application process. If you have a lower DTI, you have a better chance of obtaining the loan, being that your monthly debt payments are a smaller percentage of your overall income, making it more likely you can continue making the payments without feeling as much financial stress and the need to abandon making payments.
Job History and Income
Lenders will be more likely to approve your request for financing if you have a stable job history and consistent income. After all, you need to keep making payments for many years. That will be much easier with more consistent income and job security. Century Next Bank provides trusted mortgage loans in Monroe, LA and is a Member FDIC and Equal Housing Lender.
