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The excitement of going house hunting can easily be marred if you don’t meet your bank’s mortgage loan criteria. Fortunately, the experienced team at Putnam 1st Mercantile Bank in Cookeville, TN, can guide you through the qualifying conditions for a house loan.

A Guide to Mortgage Loan Qualification

1. Find Out Your Credit Score

Mortgage LoanAlthough an excellent credit score doesn’t guarantee a loan, it does serve as a starting point for your mortgage application. A score above 760 not only gives you an excellent rating but also helps the bank see you as a responsible buyer. Any score below 500 typically receives a poor rating and diminishes your chances of getting your loan approved. 

2. Income

Your annual income is the most important aspect of determining your eligibility for a house-buying loan. Cookeville’s leading local bank asks their applicants to furnish them with their current pay stubs, tax returns, and any other relevant documents to prove sufficient income. This helps them determine your ability to afford the house and make payments per the set terms.

3. Outstanding Debts

Another important section your mortgage loan application contains is regarding the number and amount of outstanding debts you owe. Failure to reimburse any prior debts reflects poorly on an individual’s credit score and can be used as grounds for rejection. Putnam 1st Mercantile Bank recommends disclosing all details surrounding the loans you received for your car, education, or another property. This information helps bank officials gauge your ability to afford mortgage payments while paying off other loans.

Anytime you have any queries about mortgage loans and how they work, Putnam 1st Mercantile Bank is ready to be of service. Offering the most trusted loan services in Cookeville, they know what it takes to get your mortgage approved by a local bank. For further information about their loan services, call (931) 528-6372, and get a rough idea of your monthly payments with their online calculator.

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