Wednesday, April 5, 2017
Is There A Certain Income Level Required To Modify My Mortgage?
Modifying your mortgage loan is a good way to reduce your payments, and loosen up an otherwise tight monthly budget. The process to get a modification requires you to apply with your current lender, and during that process you will be asked to provide certain documents. One thing you can expect to have to provide is proof of your income. This information is used to determine whether you are capable of making the reduced payment, which seems strange because it is much easier to pay less than it is to pay more. Nevertheless, lenders do require proof of income to be provided when applying for a mortgage loan modification.
This may have you wondering if you have to make a certain amount before your lender will agree to a modification, and the answer depends on your particular set of circumstances. Generally speaking, you will need to show:
• How much income you have, to go towards your house payment, even a modified and reduced payment amount.
• Employment information, to show the likelihood of continued employment.
• In some instances, you can provide proof of other debts you are paying each month, so an idea can be formed as to how much disposable income you have.
So while there is no set baseline level of income that is required to ask for a modification of your mortgage, you do have to provide information as to your specific income data. The first step is to ask, and then tackle any hurdles you encounter once your application is in process. Many times lenders will have a preset formula they use to review the information you provide, and that can mean you will need to make the matter personal. It is hard to accomplish much of anything by using preset guidelines, and a human element must be taken into account. This can be intimidating when dealing with large banks, but our office has experience doing so and is not afraid to go to bat for you. We know how helpful it can be to reduce your monthly bills, and will work hard to make sure you get results that work for you.
For more information about managing your mortgage payment or asking for a modification, call us today or reach us online at www.law-ri.com. We will help by looking at the facts of your case and giving you options to reach your financial goals.