Before you call your lender or do anything, take the time to look at your full financial picture. Whether they are Fannie Mae, Freddie Mac, Conventional, VA, or FHA, the one thing they all want to see is your financial picture.

Each mortgage lender will have a financial sheet they go by on their website. Pull it up ahead of time and fill it out.

The first thing you need to do is write down everything you owe. One thing you can do is pull your credit report because these are the items you are going to have to prove you can pay. The Mortgage Lender will eventually pull your credit report for verification of expenses.

If you have credit cards and you let them go or have not been paying on them, you still need to add the minimum balances that are due in your monthly budget. This is true with anything you are carrying a balance on even if you have stopped paying them due to financial constraints.

List all mortgages with complete names and account numbers. List all total balances that are due along with the monthly payment due on each mortgage.

List balances of bank accounts and all assets.

You can only modify the house you are living in, so make sure you are staying in the property and this is your primary residence.

Make sure you answer every question in detail, and write neatly.

You will also be asked about your utilities, food allowance, extra activities even hair and barber fees. When you first list everything, be honest. You will then see where you need to cut back later on. These Items can be adjusted to bring extra cash should you need it for your financial adjustment.

After you complete the form, compare what you are spending to your net Income. Your net income is what you actually bring home. If your expenses exceed what you bring home, you need to make some adjustments. If you don’t have enough to adjust the difference, you must be creative to bring in additional income.

Some of the things you might consider is renting out a room, getting a part time job, include any alimony, child support, etc., that you receive. You can also include the income of anyone in your home who is working and has provable income.

Example 1: Your net is $1800

Your total expenses are $2000

You can find $200 by cutting down your food bill, or some other personal expense to make the adjustment. You should posture yourself $200-$300 over your expenses to qualify easily for the modification.

Example 2: Your net is $1800

Your total expenses $2400

You don’t have enough to cut out to bring your expenses down, so you might consider a renter to prove the additional income or a part-time job. All money must be verifiable or passed through your personal bank account.