Thankfully, help is now available for those who are stuck with a mortgage payment they can’t afford. Help is not only available, but it is getting easier to find the needed help. We are going to discuss three important steps to make sure you can get a lower mortgage payment through your bank’s approval. Getting the loan modification approval is an option that our government is giving us to get some relief from higher payments. It’s a chance to take advantage of, so it’s important to not make careless mistakes when filling out your application.
The first thing to do is let your financial institution know what problems you are experiencing with your mortgage payments. They need a letter, called a hardship letter, where you explain why you need loan modification approval. If there have been changes to your budget or unexpected bills, they need to know this in your hardship letter. It should be convincing and professional, letting them know that you are having problems, but are willing to work out a plan to help yourself and improve your current circumstances.
The next thing you should do is figure out your budget. In order to give a loan modification, your bank must be convinced that you really need it. A budget is the perfect way to do this. A statement showing all the details of your expenses, income and monthly bills will go a long way in letting your financial institution know your needs. Make sure to be totally honest and upfront with your needs, as your bank may check your figures to verify them. You will also want to show a new mortgage payment of about 30% of your current monthly gross income. This will give both you and the bank a target to work towards.
Lastly, you need to take all of your paperwork to the bank so they can make a decision on your qualifications for the loan. Again, accuracy on your part will make the process go faster. Everything should be neat, clean and accurate. Also, before you sign any documents, make sure you know what you are signing. Read all the fine print and if you don’t understand, ask for an explanation. Making sure you are thorough will help this to be an easy process and give you a greater chance to get the loan you need.
Go through these steps, one at a time, taking care to do each one properly. Ask questions, research, and get your papers in order. Lenders are willing to give these loans out to those who are truly needy and willing to make the modified payments. Get started today so you can get a lower payment and take some of the stress out of your busy life.