STOP!  Do not submit your application until you learn the basics of what it takes to qualify for help.  Completing your loan modification forms correctly is the key to getting approved for the loan workout you need.  The fact is that your lender will base their decision in large part on the information you provide to them-so make sure that you have the upfront information you need to do it right.  Here are a few important tips that your lender won’t tell you-but that you need to know before you apply for a loan modification.

This is critical, you must have a goal in mind.  First of all, know what you are asking for.  This means that you have figured out a new family budget and determined an affordable new mortgage payment that you can pay and maintain.  This is called your target payment, and this is your goal when working with your lender.  Your loan modification forms need to prove clearly, in black and white, that you can afford this new modified target payment so that your bank will be motivated to help you.  To compute your new target payment, you must take into consideration your lenders debt ratio approval guidelines so that the new payment not only fits your budget, but also meets the banks criteria.  This is not hard to do once you understand how to calculate your own debt ratio-you can get directions on how to do this with the help of a handbook.

The federal plan called Home Affordable Modification, has set a target payment that equals just 31% of the household gross income.  Keep in mind that this payment also includes your monthly property taxes, homeowners insurance and any homeowners dues.  The goal is to give you an affordable and sustainable mortgage payment to avoid foreclosure.

TIP:  Here’s an important tip when completing your loan modification forms-be sure that you have eliminated any unnecessary expenses from your financial statement.  Your lender is looking to see that you have made home ownership a priority, so items like luxury car payments, club memberships or frivolous expenses will not be looked on favorably.  You must prove to your lender that you are doing everything you can to save your home, and convince them that you are a good candidate for a loan workout.

TIP:  Do you know about disposable income?  This is a very important consideration for many lenders when reviewing your loan modification forms. This refers to how much cash you have left over each month after paying all of your expenses.  Why is this important?  Simple, everyone has unexpected expenses, emergencies, etc. that require some extra money.  If your budget is so tight that you have no money left over and something comes up, you may not be able to pay your modified mortgage payment.  This causes your lender to feel that you might be a risk for re-default-and they do not want that to happen.  The trick is not showing too much or too little money left at the end of the month.

TIPS:  These three tips will help you complete your loan modification forms correctly,  so that you have the best chance of success.  Let’s face it-your lender does not have to offer you a loan workout-it is up to you to present your situation in the best possible light so that they will be motivated to help you stay in your home.  It’s not hard to understand, but make sure that you take the time to learn about all the tips and insider secrets you need to know before you prepare and submit your loan modification application.  It could be the difference between success and failure.

You can get the help you need to 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.

Home Edition Loan Modification Kit with Customer Assist

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. You also get 30 days of email support to ask questions, a series of insider tips and a monthly newsletter to keep you up to date on program changes. 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. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com