What Are the Monthly Expenses You Need to Show on a Loan Modification Application? What Will Work?

Before you fill out your loan modification application and send it in for review, make certain the you know how to itemize your monthly expenses and monthly income. You will be asked to complete the three page form, called a RMA or Request for Modification Affidavit. The second page is where you breakdown all of your monthly expenses, income and cash in the bank. Most borrowers do not realize how important it is to prepare this section of the form correctly-it can literally make the difference between approval and denial! Here is some information on what you need to be on the look out for:

Loan Modification Application Monthly Expenses-TIPS

Quick Cash Loan

Average out your utility bills-this does not have to be exact but since some months are higher than others it is ok to take an approximate average
Do not list items like hair & nail care, club memberships, or any other luxury items!
The average grocery expense is 0-600 per month- unless you have a very large family it is best to stay in that range
Make sure you break out your mortgage payment, monthly property taxes, homeowners insurance and any HOA dues separately-the standard formula for modifying your loan needs those figures separately.
If you have other properties, then indicate the total monthly cash flow for all of them-this can either be a plus or a minus. For example if you have two homes, one has negative cash flow of 0 per month and other has a positive of , then you would indicate a monthly expense of 0.

The goal is to keep it simple - your lender is not really interested in every single one of your monthly expenses so you do not need to list them all on the loan modification application. The basic expenses are what they are looking to see from you. Your monthly housing expenses, food costs, insurance, auto expenses, credit card payments and any installment loan payments need to be listed. Any miscellaneous expenses like clothing, dry cleaning, and entertainment can be lumped together under "other expenses"

Most borrowers do not realize how critical this part of the loan modification application is to whether they are approved or not. The bank reviews this expense information very carefully along with the income listed. They use all that information to determine if the borrower's loan can be modified using the standard Waterfall Method of modification. Sometimes just a small adjustment to the either the income or expenses could be the difference between fitting the guidelines and getting approved, or being declined.

If you are not sure exactly how to list your monthly expenses and income on your loan modification application then you may want to use the best-selling software designed specifically to help borrowers qualify. When you put in your own income, expenses and cash in the bank, you will see immediately if you are passing and where you may need to make adjustments to your figures. You can then fine tune your budget before submitting it for review by your lender. You can save time and be confident that you have prepared your application correctly and will have a good chance of getting your loan modification approved! thousands of homeowners have already been helped and you can too.

What Are the Monthly Expenses You Need to Show on a Loan Modification Application? What Will Work?

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