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The ABCs Of Qualifying For A Home Loan

I'm selling a home to buy one. What papers are needed?

Moving from one mortgage (and house) to another might seem like a balancing act, but the fact is that M&T Bank processes loans like these every day. It's very common for families to take on a new mortgage while they're saying goodbye to a previous one. We'll work with you to manage situations like this….

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I'm getting a gift from someone else. That's OK?

Everyone loves gifts, right? A gift for a down payment on a home is even better. Receiving gift money is completely acceptable for home down payments, provided the money comes from your relative or your co-borrower's relative. When we're processing mortgage applications, we want to know where the money for the down payment comes from….

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How can I improve my credit score?

Everyone wants good credit, but what can you do to improve your credit score? Even though the components that determine your credit score might feel as easy to understand as the elements on a periodic table (think of your standard science guy here), the good news is…

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What factors impact my credit score?

When we conduct a credit check during the mortgage loan application process, one of the pieces of information that we want is your credit score. This is a number — typically between 300 and 900 — that assesses your ability to take on and repay debt. Credit scores typically…

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How does bankruptcy or foreclosure change the dynamic?

Financial problems happen to just about everyone. We've all been there. If you've experienced a bankruptcy or a foreclosure, it doesn't necessarily prevent you from entering the mortgage application process. Don't let a hiccup from the past keep you from your future – we'll work with you. First, we'll want to know…

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Do I show pending student loan as installment debt?

Millions of adults like you are repaying their student loans — and a significant portion of these people also own homes. Simply having student loans won't stop you from getting a mortgage, just like getting a philosophy degree didn't stop you from getting a job. (Score 1 for perseverance.) M&T Bank will need to know…

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What is an installment debt?

During the mortgage application process, you'll be asked a lot of questions. We're really good at this – it's like a first date – except we really listen. And one of the things we'll ask you about is if you have any installment debts. (By the way, your credit check will also bring up any past installment…

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I've co-signed a loan. Should I include that debt?

Co-signing mortgages or other loans is a common practice for parents trying to help their children establish a good credit history, relatives or even friends who want to lend (no pun intended) a hand. While it won't keep you from getting a mortgage, if you've co-signed another loan, it counts as debt and you should…

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Can I really borrow funds towards my down payment?

Finding money for down payments can be a challenge, and piggy banks are only so large. When you work with M&T Bank for your home loan, we'll need to know where the funds for your down payment come from, even if it means you got a little help. Here are a couple of reasons why…

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What will be required if I withdraw money from a 401K?

If you've been saving money from each paycheck in a 401(k) account, nice work! You're saving for the future. Often, new homebuyers want to apply some funds from their 401(k) toward a down payment. There are some fees and tax implications for this — talk to your tax adviser to learn more — but from…

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I was just in school. How do I complete the process?

You've landed a job – excellent! Now you're taking the next step by going through the mortgage application process to buy a home. While you search for a home, we'll be verifying income. Often people establish themselves in a new job for a while before taking on large financial obligations. You're going to want to…

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I've had a few employers. How does that change things?

Staying with the same boss for your entire career is so what your grandparents used to do. Now, it's pretty much normal to get a new job whenever you want. M&T Bank knows that you might join a new startup or get recruited for a new opportunity. And those shouldn't stop you from buying a…

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I relocated with a new job. What does M&T Bank need?

Relocating for a new job is exciting — but also very stressful if you're buying a home at the same time. But just because you're new to your area, it doesn't mean you can't get a mortgage. In fact, the mortgage application process is pretty chill for people who are new to a city or…

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Will my second job income be considered?

If you've waited tables, worked nights in building security or taken extra shifts to pay for your new home, you don't deserve red tape. M&T Bank knows what a pain it can be to work with lenders on income verification. It can be intimidating, especially after you've worked so hard to save from a second…

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Do I need to provide child support or alimony details?

When M&T Bank is verifying income for a loan, we consider all forms of income. That includes traditional income on a W-2, tips, bonuses, dividend income and more. But if you're receiving child support, alimony or separate maintenance income, you aren't required to report this during the mortgage application process. It can help, though. We…

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What do I need to show for dividends or interest income?

Typically, M&T Bank looks at two years of personal tax returns when we're verifying income. By reviewing income tax filings during the mortgage application process, we also get a peek at dividend and/or interest income that you've received. And if you're a total investment baller, then you should show it off. Knowing you're earning money…

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How does M&T Bank verify rental income?

If you own a rental property or multiple properties (first off, way to go, that's thinking ahead!), you're certainly able to go through the mortgage application process. M&T Bank works with owners of multiple rental properties just like any other prospective borrower, and all we'll need to do is several hundred seconds of income verification….

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Can M&T Bank consider income not on my tax return?

Typically, M&T Bank only considers income that's reported on tax returns when we conduct income verification. The exception, of course, is if the income is legally tax-free. As we go through the mortgage application process with you, we'll review your income history and we'll crunch other financial data. If you report information that's not on…

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I have retirement income. What should I provide?

Congratulations on being retired! You are absolutely still eligible to get a mortgage now that you're finished with your career. The only difference is that, instead of providing pay stubs in the mortgage application process, you'll provide copies of pension check stubs, Social Security deposits or bank statements for verifying income for the monthly mortgage…

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Is commission or bonus income part of the application?

When you're going through the mortgage application process, verifying income is important to determine how much you can afford to borrow. Getting bonuses, commission or overtime income is always great – spare cash is awesome, right? What's even better is that extra income can help you qualify for more home. But, we have to be…

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I'm self-employed. How do you verify my income?

If you're earning money on your own, you'll need to provide income verification when you decide to apply for a mortgage. But it's cool: the mortgage application process is basically the same as borrowers who have 9 to 5 office jobs. Verifying income is important to the loan pre-approval process. If you're self-employed, we'll need…

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Will pulling a credit report cost me anything?

When M&T Bank conducts a credit check for your mortgage application, there's no up-front charge for accessing the information. Knowing your credit score is an important part of getting you pre-approved. Once we've pre-approved you and determined how much you can afford, it's your choice to move forward with us and complete the loan. If…

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What's the deal with credit scores?

A credit score is an assessment of your overall credit profile. Factors such as your payment history, balances and the number of months/years you've had accounts open all go into determining your score. Your student loans, car loans and credit cards – and how well you managed them – also shape your score that typically…

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Can I apply for a loan before I find a property?

Prospective home buyers often wonder if pre-qualifying is worth the time and effort. At M&T Bank, we encourage applicants to apply for a mortgage and get their financing in order before they start shopping for a home. It's a smart way to go. By going through the pre-approval process, you'll know how much home you…

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