Las Vegas, NV -- Are you looking for a way to lower your mortgage payments to be able to keep your home. Many Homeowners accross the country are looking for a way to lower their mortgage payments, so your are not alone. Your answer to what you are looking for could be a Mortgage Loan Modification. A Mortgage Loan Modification is an agreement that is made by the lender to allow the homeowners to make a lower mortgage payment. The lender may change interest rates, loan terms, loan balances, or other parts of the loan agreement. A loan modification is not a new loan but the same loan, modified to a new lower payment.
You might be wondering, Do I qualify for a loan modification? If you are behind on your payments, you could be asking yourself if it's to late to try to do a lon modification. The answer is you will never know until you actually apply for a loan modification.
You will need to qualify for a loan modofication. Each lender will have their own seperate qualifications but here is what the majority are looking for to accept a Loan Modification.
# You must have endured a hardship. A hardship can include loss of job, reduction in pay, medical illness, costly medical bills, a significant interest rate increase on an adjustable rate mortgage (ARM).
# Your ability to afford a reasonable lower monthly payment. You will have to prove to your lenderthat you will be able to afford the modified payment.
# Supporting documentation, including W-2's, current credit report, pay stubs, federal income tax returns, bank statements, and so on.
Your Lender will determine if you qualify based on your debt-to-income ratio (DTI) - your monthly debt payments divided by your gross monthly income. The front-end ratio covers only your monthly house payment including anything you pay into escrow. The back-end ratio consists of all your debt payments- This includes your house payment, car payment, credit card payments, and any ather debts you might have. FHA recommends that your back-end ratio not exceed 43 percent and your front-end ratio not exceed 31 percent of your gross income, although your lender might have different guidelines.
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