Affordability is one of the key elements in the mortgage loan approval process. If lenders want to approve a marketable loan, making sure the new mortgage payments fall into a comfort zone for the borrowers. This is accomplished by comparing monthly debt payments to qualifying gross monthly income. Qualifying debt payments are those associated with […]
For those fortunate enough to have earned their VA home loan eligibility, the VA program is the ideal low-closing cost mortgage. There really is no other program that can match it. Perhaps the most attractive feature of the VA loan is the down payment. The VA loan doesn’t require a down payment. In addition, veterans […]
One of the determinations lenders must make when evaluating a loan application is whether or not the borrowers can comfortably afford the new mortgage payments. Regular income, revolving debt, installment debt, and outside income are all considered. This is done primarily by way of debt-to-income ratios, or simply “debt ratios.” Most loan programs provide guidance […]
Homeowners know there are different reasons to refinance. When asked why someone is refinancing, the most common answer is “lower rates.” While that’s perhaps the most popular reason there are others, too. Homeowners can refinance to lower a rate but they can also refinance to change the term of the loan. If say, someone is […]
Thinking about buying your very own vacation property? Many people do right after they rent a vacation property and love the peace and quiet away from city life. They enjoy it so much they decide instead of renting one every year, let’s just buy one of our own! It’s more common than you might think. […]
Lenders pay careful attention to the value of a property as they’re reviewing a home loan application. Loan amounts are set based upon the type of program which establishes a maximum “loan to value” or LTV. Most loans require some amount of down payment ranging anywhere from 3.0% to 5%, although some programs don’t require […]
There’s quite a bit of information disclosed when you first submit a loan application. You’ll be asked to provide documentation supporting how much money you make each month, how much you’ve made the last two years, how much available cash you have on hand to close a transaction…and that’s just the beginning. Once an application […]
What is a rescission period and why do they exist in the mortgage industry? A rescission period is basically a “cooling off” period in place after homeowners sign loan papers refinancing an existing mortgage. There can be multiple reasons why someone would want to refinance, and most often it’s to get a lower rate. But […]
There are several reasons to consider a refinance, there can be more to it than just lowering the rate on a loan. If you’re looking at your mortgage and thinking of refinancing, let’s talk about your options based upon your personal financial situation and not some “model” based upon when it’s a good time to […]
When a lender evaluates a loan application, there really are two separate approvals going on. One is the lender evaluating the applicant. The applicant’s employment and income are reviewed making sure the new loan is affordable. A credit report and credit scores are ordered to make sure the applicant meets the minimum credit standards for […]
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