If you’ve applied for a police officer mortgage in the state of Washington, it’s natural to have questions about approval rates.
Although there is no magic crystal ball that can provide an exact answer, there are some general factors that will come into play. For the most part, if you have a manageable debt-to-income ratio, steady income and a FICO score that’s above 600, you may qualify to receive a police officer mortgage.
Remember, the most important factor a lender will consider during the mortgage approval process relates to the borrower’s ability to repay the loan.
Why your credit score is important
Your credit score, also known as your FICO score, is based on prior history of on-time payments, your debt-to-income ratio, and the amount of open, revolving credit that you have available.
A borrower’s score will range between 300 and 850; anything below 600 is considered to be “bad credit” while a score of 700 and above is considered to be “good / excellent credit.”
The range between 600 and 700 is “average.”
As we mentioned above, there are several factors that come into play in determining your credit score.
For example, someone who has a history of paying their bills late, who has a very high debt-to-income ratio, and has maxed out nearly all of their credit cards, will have a much shakier credit score than someone who pays their bills on time, who is using less than 30 percent of their revolving credit and who has a healthy debt-to-income ratio.
Not surprisingly, people who have stronger FICO scores are much more likely to be approved for a home loan than people who have shaky credit. On the flip side, would-be borrowers who have credit scores that are below 600 are likely to have a tough time getting approved.
Considering debt-to-income ratio
The primary reason that lenders consider debt-to-income ratio is that they want to make sure you’re not taking on too significant an amount of debt. If you don’t have the financial ability to repay the loan, the lender may not consider you to be a good risk.
Ultimately, your monthly take home income must be sufficient to pay your recurring debt, such as your credit card bills, car payments, insurance payments and your anticipated mortgage payments.
As a general rule of thumb, borrowers who spend 40 percent (or less) of their monthly take home income on recurring debts are considered to be a good lending risk.
If you have questions about your ability to qualify for a police officer mortgage in the state of Washington, call Home Loans Today at 866-919-2064 to speak directly with a loan officer. We’ll be more than happy to take as much time as needed to answer any and all questions you might have.
If you’re ready to begin the application process today, we’ll provide you with a list of documents you’ll need to submit to our office. Or, if you’re simply wanting information for an application you may submit in the future, we’ll make sure you have all the information you’ll need to move forward, when you’re ready.
Call us today to learn why we’re the most trusted provider of police officer mortgages in the Pacific Northwest.