Will You Qualify? What You Need To Get A Mortgage

Will You Qualify? What You Need To Get A Mortgage

If you are a first time homebuyer, navigating all the new information about homeownership, the home buying process, and mortgages can seem overwhelming.  If you are beginning the mortgage shopping process, but have no clue as to what information you’ll need and whether or not you’ll even qualify, here is some information that may make the process a little smoother.

 

Will I Qualify For A Mortgage?

 

There are essentially three things that lenders look at to determine whether or not you qualify for a mortgage.

 

Income Verification

 

When purchasing a property, all income of a homebuyer must be validated by a mortgage underwriter in order to receive a loan.  Income verification can be done using several types of documents such as a W-2 statement, paycheck stubs, or income tax statements that show proof of income. These documents usually will have to span a period of two years or more to show you have a history of a steady income.  Income proof can include such things as child support payments, disability payments, or income from the Social Security Administration.  These additional monthly payments can increase your potential to qualify for a mortgage, as well as the amount you will qualify for, but like regular income, must be validated in order to count.

 

Debt-To-Income Ratio

 

Another important factor in getting a mortgage will be your debt-to-income ratio.  This involves looking at your total debt load and monthly payments, including car payments, credit card debt, and any student loan debt.  If the ratio of debt exceeds 40 % of your income, you will likely have to pay off some debt before you will qualify for a loan.  In this case you may want to seek out the advice of a financial advisor to help with this process.

 

Credit History

 

The final consideration that lenders will take into account in determining whether you qualify for a mortgage is your credit history and score.  They will not only be looking for a strong history of on-time payments for all your debts, but also that you have already established credit.  You can arm yourself with this information by getting your free credit report from sources such as Equifax, so that you are able to check that it is accurate and up to date.

 

When getting a mortgage, being prepared with a little background research and all required documents will make the process simpler and less stressful.  Armed with this information, you will be able to get the best possible deal with a lender who is right for you.

Moving day approaches for 137-year-old Morris Marks House

Karen Karlsson and Rick Michaelson have a plan to cut a 137-year-old house in half, carefully load it on a pair of trucks and drive through downtown Portland.

It’s not as easy as it sounds. Oh, and there’s a deadline.

But the Morris Marks House, a rare Portland example of Italianate architecture at 1134 S.W. 12th Ave., appears set to move later this month to a vacant lot near the Interstate 405 interchange at Southwest Broadway and Sixth Avenue.

The city and Portland State University – through which the house would have to cross – have agreed in principle to the move. The City Council is expected to consider a suite of zoning changes and regulatory approvals that would clear the way for the move later this month.

If all goes according the plan, the move is set for Sept. 30.

“Nobody’s trying to stop this,” Michaelson said. “Everybody’s trying to make it happen. It’s wonderful.”

That’s not to say it’s been easy. Officials originally believed the proposed site for the house belonged to the Parks & Recreation Bureau, but it turned out to be a Water Bureau property.

Karlsson and Michaelson expect to buy the site for about $100,000, and they’ll lease it until the sale is finalized. The city also is waiving development fees.

PSU officials had been concerned the move might damage the university’s tree canopy. It also recently said that a campus construction project would begin Oct. 1, blocking the route.

“With a deadline like we have,” Karlsson said, “It’s now or never.”

The Morris Marks House has been on preservationists’ minds for decades. It’s been empty, fenced off and boarded up for years as new apartment buildings have sprung up nearby.

A demolition permit application set off alarm bells last year, but it turned out to be a precursor for the move.

Steven Blindheim, whose family has owned the house and an apartment building on the same lot since the early 1990s, had agreed to sell it to Karlsson, a consultant and former city project manager, and Michaelson, a longtime developer, for $1 if they could come up with a plan to move it.

They worked to secure permits, acquire the new site from the water bureau and gain permission to cross PSU’s campus.

The house will be cut into two large pieces, mostly through corners where the cuts wouldn’t be apparent or compromise the structure. It will be carefully pieced back together at the new site atop a new foundation.

Despite sitting empty, the house is still in good condition, said Richard De Wolf, the owner of Arciform. The design firm is responsible for disassembling and reassembling the house.

“Structurally, it’s very good,” De Wolf said. “The interior finishes are a bit worn, but … we’re putting emphasis on the things that are worth saving, like the floor.”

Oxbo Mega Transport Solutions, a Portland firm that moves large equipment, will relocate the house.

The house was designed by Warren Williams, a prolific Portland architect whose work includes The Old Church and several cast-iron commercial buildings that still stand in Old Town. The first owner was Morris Marks, a Polish shoe merchant.

The move alone will cost about $400,000, and renovating the house for use as offices more than that. For now, Karlsson and Michaelson will bear the cost, and they’ll likely launch a fundraising campaign after the move is complete.

“It’s that important a house in Portland that I’m willing to take on that risk,” Michaelson said.

— Elliot Njus

Rates reach best levels since November elections

Another Missile Test Overview: Over the past week, yet another increase in tensions with North Korea was positive for mortgage rates. Recent economic data had little impact. As a result, mortgage rates ended at the best levels since before the November elections.  North Korea conducted another missile test on Sunday. This was the most powerful missile yet. The reaction by investors to the uncertainty about where this could lead was a “flight to safety.” This means that they shifted from riskier assets, such as stocks, to relatively safer assets, including U.S. mortgage-backed securities (MBS). The added demand for MBS caused mortgage rates to decline. The earnings component of the key Employment Report from the Bureau of Labor Statistics released on Friday showed that the annual rate of wage growth in August held steady from July at 2.5%, which was lower than expected. When the labor market tightens and the unemployment rate drops, companies usually are forced to compete for workers by raising wages. Early in the year, this appeared to be happening, as annual wage growth looked to be rising toward 3.0% or higher. For the last six months, however, the annual rate has been holding steady around 2.5%. Possible reasons include demographic changes and a shifting mix of higher paying versus lower paying jobs. In any case, a lower level of wage growth reduces future inflationary pressures, which is good for mortgage rates. Week Ahead Looking ahead, there will be a European Central Bank (ECB) meeting on Thursday, which could affect U.S. mortgage rates. Investors will be looking for information from the ECB about future plans for tapering its bond purchase program. In the U.S., the Consumer Price Index (CPI) will come out on September 14. CPI is a widely followed monthly inflation report. The Retail Sales report will be released on September 15. Consumer spending accounts for about 70% of economic activity in the U.S., and the retail sales data is a key indicator.