Home Loans In Portland, Maine

Portland, Maine, is the most desirable destination for homeowners and prospective buyers seeking to relocate from densely populated metropolitan regions. However, as one of the hottest real estate markets in the country, it can be very tough for buyers to secure a home in the area. 

With Portland area housing prices predicted to rise faster than any other region in the United States next year, you’d be wise to begin your search if you’re considering relocating and purchasing a property in Portland! Most importantly, ensure that your finances are to maximize your chances of being approved for a mortgage.

How To Qualify For A Mortgage In Portland

The majority of people who buy a home do so with the assistance of a mortgage. Home loans enable you to afford a property without immediately paying a significant lump sum of cash.

Since mortgages require substantial money on the lender’s part, expect lending institutions to scrutinize the state of your finances before approving or rejecting your application. Though you don’t necessarily need a near-perfect financial situation to be granted a home loan, lenders typically increase the interest rate or require a higher down payment for high-risk borrowers.

The following are the primary factors considered by Portland lenders when evaluating a mortgage application:

• Your Income & Employment

Having a stable job is a huge plus when applying for a home loan. Upon mortgage application, your lender will require you to submit proof of employment and income, which they will use to determine your capacity to make mortgage payments.

Your income has the most significant impact on the amount of your home loan. During the underwriting, loan underwriters will reconcile your income capacity with the loan amount to ensure that your earnings will be sufficient to cover your mortgage obligations for the term of your loan. 

• Your Current Debts

Existing debts may or may not harm your mortgage application, but having outstanding financial obligations and high credit utilization will make lenders wary of extending you a loan. 

Lenders will examine your debt-to-income ratio to evaluate whether you fall within the healthy range. The ideal DTI ratio is 43% or lower of your gross income, but some lenders may accept higher DTIs with compensating requirements.

• Your Assets & Reserves

Lenders may require borrowers to have particular reserve funds before granting them a home loan. It may include bank deposits and savings, retirement accounts, real estate, and investments.

Lenders are more confident extending a loan to those with high asset reserves. This is an added assurance that the borrower will be able to satisfy their obligations in the event of default.

• Your Financial Records

Although many people with negative financial records have obtained a home loan, we recommend fixing your finances first before applying for a mortgage.

History of credit card misuse, defaults, bankruptcies, and foreclosures will hurt your chances of getting a home loan. If you do qualify, you may end up with a mortgage with less favorable terms.

Portland, Maine Mortgage Lender

Mortgage applications can be a lengthy and tedious process, and your success depends on various criteria. However, at Capital Home Mortgage Portland, we do things a little differently.

Capital Home Mortgage is a direct mortgage lender, which means we have complete control over the entire loans process. This enables us to accept a high volume of home loan requests while offering our clients flexible underwriting and competitive rates. We can provide faster processing times and on-time approvals for Portland home loans.

Your New Home Is Within Reach!

Capital House Mortgage can help you secure the financing you need for your dream home in Portland, Maine.

What are you waiting for? Contact us at (207) 910-6282 to speak with one of our knowledgeable loan officers and receive a no-obligation quote!