If you are wondering how lenders actually qualify you for a mortgage, here are the nuts and bolts of how it works behind the scenes! Get your mortgage insider tips from Con Daly – Certified Financial Planner™.
A stable, solid work history or other source of income is vital to your loan application. Your employment history for at least the past two years must be documented with an Employment Detail Summary (Formerly P60) a person must be in their current employment for at least one year, and not subject to contract or probation. Your current employer must fill out a salary certificate, to confirm your yearly salary. If you are self-employed, you will also need to provide a Notice of Assessment and Two years audited accounts: The following types of employment will be highly scrutinized and may or may not be allowed as qualifying income:
- Self-employment for less than two full tax years, an explanation as to previous employment may be requested.
- Contract Employment
- Commission and bonuses and overtime payments if applicable
- Rental income that shows as a loss on your tax returns
- A good rule of thumb is: “If you can’t trace it, you can’t use it”. Thus, income that does not show up on your tax returns cannot be used to qualify.
Your credit report will show any debts you may have or had in the past. Those debts include credit cards, car payments, student loans and mortgages. The credit report will show if you are a good risk, in that you paid your loans on time and in full. If you never had a loan or a credit card, it will show this also. See enclosed link to explain how a credit check is done and rated.
Under Data Protection Acts 1988 and 2003, you are entitled to receive a full copy of any data held in your respect on ICB’s database. There is a 6.00 Euro fee per application