"Alice P" is a handy way to remember the key points a lender will consider while reviewing your application. "Alice P" stands for: ASSETS, LIABILITIES, INCOME, CREDIT, EMPLOYMENT AND PROPERTY. If you know the answers to the following questions before you apply for a loan...you can save valuable time and greatly increase your chance of approval!
A=ASSETS: How much cash are you willing to invest in a home? What's the source of funds for the down payment and closing costs? When will this money be available? How much of your available cash, if any, is a gift?
L=LIABILITIES: What are your recurring monthly obligations such as revolving charge accounts, installment loans, car payments or credit cards? How many payments remain on each installment loan? Have you co-signed on any debts such as student or car loans? If so, how many payments are left? Do you pay child support, alimony or separate maintenance? If so, how much, and how many payments remain? Will you be able to satisfy any of these debts before closing?
I=INCOME: What is your total gross monthly income? Do you receive income from sources other than salary? If so, from where and can you provide proof of income? If you receive alimony, how much, for how long, and how much longer do you expect to receive it? If self-employed, what is your taxable income? Can you provide tax returns, financial statements and balance sheets for the past two full years, and a partial balance sheet for the current year?
C=CREDIT: Do you have a history of late payments, and if so, why? Your reasons for being late could be very important! Do you have any liens, judgements, bankrupticies, collections, or charge-offs against you?
E=EMPLOYMENT: Where are you employed and for how long? Are you considering any change of employment in the near future?
P=PROPERTY: Is the assumed fair market value of the property reasonable and justified? Does the condition of the property indicate that a lender will probably require repairs? Is the value in the building rather than in the land? Are the seller concessions within accepted guidelines?
As you can see...."Alice P" is someone who asks a lot of questions! Once you realize how much time and trouble you can save by having the answers...You'll be glad she did! Direction Mortgage will help you deal with all of these important questions. Just remember to bring the answers when you come in..and Say Hello to Alice P!!
For more information, call the helpful professionals at Direction Mortgage Company today!!!