Banks and financial institutions sometimes make home refinancing or mortgage modification sound extremely complicated, or even intimidating. Besides the initial security procedure like confirming your identity, date of birth, and social security number, the process is actual surprisingly simple.

Mortgage Modification Qualifications

1. The home must be the primary residence.
Those looking to modify their mortgages on a second home, holiday home or investment home will be turned down. The mortgage modification process was created specifically for peoples primary homes. In reality if you do happen to own a second home you most likely won’t be approved to begin with.

2. Be honest with your bank or lender.
It is extremely important to be completely truthful with your lender or bank when giving personal financial information. They use that information to create a new agreement. Do not try to make your financial situation better than it is or worse than it is, lying and cheating won’t get you anywhere.

3. Be prepared to pay 30% of your income towards your loan.
The guideline for new mortgages that have been modified is 30% of your monthly income. It sounds like a huge chunk but it reality odds are you are paying more than that right now. Also always be aware of any fees that you are being charged. Don’t let anyone take advantage of you and your situation.

Different banks and lenders ask for different information, they all have different protocols. Remember that you are a customer and that you are repaying them with interest. You are not a charity case. Many banks and lenders are given government cash incentives for working with struggling homeowners so make sure you shop around and are comfortable with the terms of the loan. Remember that doing research and asking for a quote does not mean that you are obligated to sign anything.

It is also a good idea for an experience legal professional to review your home loan modification agreement to make sure that everything is in order. Even if you have to pay a professional to review the agreement it will be worth while because of the peace of mind. They can check for any hidden loop holes or extra unnecessary fees. If you are not happy with the agreement or unsure of any part of it, keep in mind that you can always turn it down.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner