STEP #3: Looking At Your Credit.

Once you have submitted your loan application, the First Western Mortgage team looks at several areas that have a large impact on approving the loan. One of these is a review of your credit history, which may be based on the past eight or 10 years. The report shows the typical amount of debt you carry, and if you pay your bills on time. If your credit score is less than perfect, First Western Mortgage will work with you to determine the cause and see if it can’t be remedied.

Other things we look at in evaluating your application include:

• Your Income. Your gross income (the amount you received from your employer before taxes and other expenses) helps determine the monthly payment you can afford. Income can also include commissions, child support, or any other income from verified sources.
• How much of your income will go towards your mortgage payment. We want to make sure that you can meet your mortgage obligations without sacrificing your other monthly expenses. The maximum percentage your mortgage obligation should represent, in most cases, is 29 percent of your total income.
• How much debt you owe. We look to see what current debts you have to make sure your mortgage payment can be met. These debts include credit cards, child support, auto loans, college loans, etc.
• Your employment history. How many years have you worked in your chosen field? What’s the average tenure with past employers? Have you received promotions, salary increases and other recognition? These things show stability, which is important in proving your ability to meet your mortgage obligations.