Top Mortgage Company in Denver Shares About Mortgage Loan Approval

Mortgage approvals are typically based on a person’s credit score and their predictable income.  At least that’s the way it used to be until the pandemic forced many individuals to earn their living from home.  As a result, many job holders became self-employed rather than continuing to subject themselves to state government regulations about COVID-19.  Not only did this change the playing field where tax filings and tax returns were concerned, but it also changed the way these individuals bought homes. With more people still opting for work from home and starting businesses, the trend will continue.

 Key Factors For Underwriters

Consequently, showing stability over the long term can be a significant factor, even if a person’s income varies from one month to the next or isn’t always paid by the same employer.  Although most mortgage lenders prefer an applicant who has a 9 to 5 job, they really need to know that the individual is capable of earning a living despite the type of job they have.  The 3 key factors that underwriters look for include:

• Good credit score – having a good credit score indicates your ability to borrow money, manage your debt, and pay off your debts reliably. Most lending institutions often view your credit score as your responsibility score or your ability to handle lines of credit and mortgage loans reliably.  Fortunately, you can build up or improve your credit score no matter if you have a conventional or unconventional source of income.
• Income threshold – it’s also important that your income tax returns and monthly bank statements reflect your ability to earn the right average amount of annual income, even if it varies monthly or seasonally. Tax returns can help prove that your overall income totals up to a lendable amount whether it’s from contracting, influencer sources, or a multiple gig economy.
• Long-term income stability – last, but certainly not least in importance, is that your tax returns should reflect that you’ve been successfully self-employed for a minimum of 2 years. This proves that, no matter what your business model is, it’s working for you and can predictably provide continued income in the future.

Let Front Range Mortgage Help You

We understand how the economy and the workforce have changed significantly over the past 2 or 3 years.  Fortunately for our diverse field of clients, we have evolved with these changes as well.  If your source of income is stable yet unconventional such as contracting, gig work, influencer sourced, online stores, or other non-salaried sources, Front Range Mortgage can help. To learn more, call them today at (303) 500-1900. Their business representatives are available to answer your queries and will provide the necessary assistance. Call now.

Contact Information:

Front Range Mortgage

600 17th St #2800
Denver, CO 80903
United States

Brian Murphy
(303) 500-1900
https://www.frontrangemortgage.com/