Aspects Considered by Tucson Credit Union for Mortgage Loans

Posted by alisonreid29 on April 24th, 2014

Buying a home, irrespective of whether it is the first time, can be a challenging process. Hundreds of decisions need to be made and voluminous paperwork has to be filled out in order before you can call the house your home. Applying for an Arizona mortgage loan and getting approval for it may prove to be the most discerning of all the tasks associated with buying a home. If you are planning to apply for a home loan from Tucson credit union or banks, it helps to know the various aspects they consider before approving your mortgage application.

One of the main factors considered by every Tucson credit union and bank is the credit history. The credit history is a document that reveals everything about your loans and repayments. This document shows the financial institutions that amount you owe to the banks in the form of auto loans, credit card payments and others. The lesser the amount of debt, the higher are the chances of the credit union or bank approving your Arizona mortgage application. The credit history also dictates the credit score which is instrumental in deciding the amount that can be loaned, the rate of interest and the amount that needs to be paid as down payment.

The income and employment status of the person applying for the Arizona mortgage loan is also considered by financial institutions. The Tucson credit union prefers customers who have a steady income or a stable job that pays them by the hour, week or month. Self employed professionals are also considered, provided they show a steady income each month. The mortgage of those who receive money in the form of  social security benefits, child support, alimony or other government sponsored benefits are also approved, albeit with certain extra terms and conditions.

The DTI ratio is another aspect that the Tucson credit union looks into when a person applies for an Arizona mortgage loan. DTI is a term that refers to debt to income ratio and plays a critical role in the approval of the application. The financial institution will consider the gross income of the applicant along with the other sources of income such as rent, child support and alimony and the debts that you owe. The latter is divided with the former to arrive at this ratio. If you have to pay child support or alimony, then that is considered as debt and added to the debt that reflects in your credit history. Any person with a DTI in the range of 35 to 40 percent has a good chance of getting the loan approved.

The Tucson credit union not only considers the cash balance present in bank accounts, but also the assets that the loan applicant owns. However, a person applying for Arizona mortgage on the merit of the assets they possess will have to provide relevant documents as specified by the financial institution. The credit union will make sure that you have enough on your hands to close the mortgage loan even if you have applied for one that offers zero percent interest.

Do you intend to avail mortgage from the Tucson credit union? Please visit our website to learn more about the Arizona mortgage we offer and apply for it.