7 Tips to Modify Your Loan and Lower Your Payment

If you are one of the thousands of homeowners trying to get help to stay in their home with a Wells Fargo loan modification that will lower your mortgage payment, you need to learn about how to increase your chances for success. Applying for a Wells Fargo loan modification program will give you the chance to lower you monthly payment so you can afford to stay in your home and avoid foreclosure. Unfortunately, not all borrowers will qualify for this help-why do some homeowners get approved while others are denied? Here are 7 Tips that will help you get your loan modification application approved:

Tip #1: Learn the lenders guidelines for approval before you send in your paperwork. Wells Fargo has implemented certain requirements that must be met to be approved. Once you know what these are, you will be able to complete the forms properly to increase your chance for approval.
Tip #2: Gather all of your bills and household expenses together, sit down and figure out a new family budget that eliminates all unnecessary expenses. You must show the lender that you are making sustained home ownership a priority.
Tip #3: Write a convincing letter explaining your circumstances that will tell the story of why you are having financial difficulties, what steps have been taken to correct the situation, and your commitment to continued home ownership. You can get help to write your own letter with a Hardship Letter outline and letter template.
Tip #4: Provide the lender with documentation to back up your hardship story. If you were laid off, give them a copy of the notice from your employer, if you had medical expense, copies of the bills. This will add credibility to your request for loan modification help.
Tip #5: Learn how to calculate your debt ratio so that you can arrive at your new modified mortgage payment that meets the Wells Fargo loan modification program guidelines. The bank needs to see that the new payment will not exceed approximately 40% of your gross monthly income. You can get more information about this very important tip and help to figure this all out.
Tip #6: Take your time and carefully complete the required loan modification application forms so that they will be accurate and acceptable. How you complete these forms will in large part determine if you receive an approval. You must show Wells Fargo that while you cannot afford the current payment, you will be able to pay and maintain the new mortgage payment. This can be tricky, but make it easy by providing a Current and a Proposed Financial Statement.
Tip #7: Submit a complete, accurate and acceptable application that meets the Wells Fargo loan modification program guidelines. Missing or incomplete packages will be rejected and valuable time will be lost. How can you make sure you are sending in everything required? Easy, follow a Document Submission Checklist.

You can definitely increase your chances for receiving a Wells Fargo loan modification by learning and preparing ahead of time. It is pretty hard to qualify for something that you do not even know the requirements for! While not everyone will be approved, you can really give yourself the fighting chance you need to save your home by taking the time to learn all about the loan modification approval process before you contact the lender.

This is not brain surgery, most borrowers can follow the easy steps and put together an acceptable loan modification application that will result in help to stay in their home. This is a frightening and confusing situation, but doing nothing is not the answer. Make the decision to take control of your financial future and get started today so you can be on your way to secure home ownership again.