When you begin the Bank of America loan modification process you will be asked to prepare a monthly expense worksheet. This is a breakdown of your income, expenses and bank balances each month. The expense worksheet is part of the standard application form, and the information you submit will be reviewed by the bank to determine if you fit into the loan mod program.
Take your time when preparing this expense worksheet because your Bank of America loan modification may actually depend on this one page! It helps to understand what the bank is looking for, how much income you need to qualify and how your monthly bills should be listed. Sadly, the most common reason for a loan mod denial is too much or too little income noted on this form.
How can you learn ahead of time just what will be required on your Bank of America monthly expense worksheet to ensure you qualify? Well, there is actually a mathematical formula that is used by the bank on every application-this formula uses the gross monthly income, monthly expenses, bank balances and current mortgage balance and current payment. If you use this very same formula on your own expense worksheet, then you will know ahead of time if any adjustments are need to fit into the guidelines.
EXPENSE WORKSHEET TIPS:
- Gross Income-must pass the guidelines for the Waterfall Method of Modification. Verify that your income is not too high or too low
- Monthly Expenses: Your current house payment, car payments, credit cards, installment loans, groceries, utilities, etc must demonstrate that you are facing a financial hardship, but that after the loan mod you will have small positive cash flow
- Bank Balances-you are only allowed to have a certain amount of liquid reserves to fit into the loan mod program. Retirement accounts are exempt. Too much money in the bank will disqualify you.
The Bank of America loan modification process can be made a whole lot easier when you know just what the bank needs to see from you-this is the inside information that makes the difference between success and failure.
Just guessing and hoping that your application is acceptable is taking a big chance. To make it simpler, you can run your own budget through the loan modification software calculator to find out if you are passing the approval triggers or just where you need to make some adjustments to your expense worksheet.
For example, if your income is too low, the software calculator will show you just how much more income you need to qualify and then you can try to get a room mate, second job or do your best to meet the requirement. Once you know just how to prepare your Bank of America expense worksheet, then you find send in your fine tuned figures with confidence knowing that you have done your best to fit right into the program approval guidelines.
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Loan Modification Guide kit and loan modification software calculator will provide you with step by step directions, required forms, and a sample monthly budget that you can follow to help you prepare your own expense worksheet correctly. Visit MyLoanModificationCenter.com for more information and get started today.