Home loan modification simply means making changes to one’s mortgage loan. The idea is to reduce a homeowner’s payment by modifying the loan.
Pittsfield, MA -- (SBWIRE) -- 02/26/2013 -- Credit-yogi.com would like folks to know how to qualify for home loan modification by offering some tips toward that end, including:
- Proof of Hardship
- Ability to Afford New Payment
- Tax Returns
- Savings/ IRA Accounts
If one is asking himself, “How to qualify for a home loan modification?” he has to first understand that the best reason to get modification is because he has a financial hardship and he can’t afford his current payment. To that end, he must write as detailed a hardship letter as possible. He must state when the hardship began, what the hardship is (job loss, illness), and why it makes the current payment difficult.
Prove Affordability of New Payment
Once the hardship letter is sent in, the homeowner will also be asked to provide proof that he’ll be able to afford the reduced payment. This is an important part of how to qualify for home loan modification. The lender will require up to one month’s worth of pay stubs from one’s employer. This will let the lender know he is not taking a chance on someone who won’t be able to make his payments as scheduled.
Qualify For Home Loan Modification Request with Credit-yogi for More Guidelines
Past 2 Years’ Tax Returns
A lender will require the past 2 years’ tax returns so he has some idea of one’s yearly income. If the question “How to qualify for a home loan modification?” is still on one’s mind, this is very important for eligibility. A lender has the right to ask for this proof of yearly income; he doesn't want to change the mortgage loan of one who does not make enough money to afford it and his expenses. Tax returns also indicate how many dependents are in the home.
Proof of Bank Accounts
A homeowner must provide proof of savings, checking, or individual retirement accounts to the lender to see if he can obtain a loan modification. When asking how to qualify for home loan modification, one part of doing so is showing whether or not one has money put aside in banks. Just because a person does have these accounts does not make him ineligible for modification. Bankers just want to know that there is something for a borrower to fall back on.
Credit-yogi.com is a reputable, considerate consumer resource website located in Pittsfield, Massachusetts that never charges for its service. It connects people who need legal or financial information with the professionals who can provide it, 24 hours a day, 7 days a week. For a free preliminary consultation, dial 866-964-9644.