Don’t fall victim to the biggest mistake many homeowners make when they apply for a loan modification-you can avoid being turned down for the help you so desperately need.  That #1 mistake is not preparing their financial statement ahead of time-before disclosing all their information to their bank.  Why is this so important?  If you just blindly start spouting off your income, debts and assets-how do you know that you fit into the lender’s guidelines for approval?  Preparation is the key to success-follow these simple steps to make sure you have a fighting chance at approval.

Here’s how it works-your lender will ask you for a detailed accounting of your monthly income and expenses.  Based on what you provide, a decision will be made to either approve or deny your application for a loan modification.  Some banks take this information right over the telephone-others require that you submit your financial statements and income documentation for review before they make a decision.  Either way, it is critical that you have all of your information ready, fine tuned and acceptable before you start the process.

You need to pull out all of your monthly bills: utility bills, groceries, gasoline, insurance, etc.  List all of those on a piece of paper so that you have an accurate picture of how much you spend each month.  Now group the utilities all together, and arrive at a total.  Do the same for your other expenses.  Annual bills, like car insurance or homeowners insurance need to be divided by 12 months to arrive at the right figure.  Keep going-don’t get discouraged-this will help you succeed!!

Pull out your 2 most recent paystubs or other income documentation.  Calculate your gross monthly income and your net monthly income.  Make sure you note any other sources of income, like roommates, child support, alimony, disability, etc.  Arrive at your total gross monthly income and your total net monthly income-write that down.  Multiply your gross income by 31%-that figure represents your ideal target mortgage payment under the Obama loan modification plan.

Now begin filling out your financial statement form-you can use a good one provided in

the #1 resource guide for homeowners, The Complete Loan Modification Guide.  You will be able to see how much money you are short each month and why you cannot afford your current mortgage payment.  The goal of the loan workout is to modify your home loan to a payment that you can afford.  That is called your target payment.  You can use the Obama plan to match your target payment-2% interest rate for 40 years is a good starting point.  Use the handy mortgage tables provided in Chapter 10 of The Complete Loan Modification Guide.

You may need to make some adjustments to your monthly bills to meet the disposable income requirement-you should have a couple hundred dollars left over after to pay the target payment and all of your other bills to be a good candidate.  That is why you need to work on your financials ahead of time-make any adjustments and make sure you fit into the approval criteria before you send in your application-it will help you avoid any costly mistakes.

Home Edition Loan Modification Kit with Customer Assist

You can get the help you need to calculate your debt ratio, find your target payment and apply and qualify for a loan modification by ordering the best selling handbook for homeowners, The Complete Loan Modification Guide. This is a low cost, easy to read, home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Learn how to qualify for the Obama Federal loan modification plan. Need help completing your loan modification forms?  Find out about our Customer Assist program-you work one-on-one with your very own expert to make sure your application is completed correctly. Get started today on the path to secure home ownership, order The Complete Loan Modification Guide, your loan mod in a box. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com