Archive for the ‘Mortgage Basics’ Category

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How to Calculate a Debt to Income Ratio

Wednesday, August 5th, 2009

 

Figuring your debt to income ratio can be tricky. Most wage earners and salaried employees will breeze through this section, however if your commissioned or self employed you may want to pay close attention to this section.

 

When underwriters figure your debt to income ratio (DTI) they will use the same methods from lender to lender as it pertains to conventional mortgages. Below are a few rules when making these calculations. For this exercise we highly suggest that you have a copy of you credit bureau in hand.

 

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Property Types for Mortgage Lenders

Saturday, June 7th, 2008

 

Many deals have been killed by a loan officer over looking this simple little check box on the 1003 (Standardized Uniform Residential Application).

 

The fact is, we often forget that lenders are holding our home as collateral, and more times than not own more of the house than the borrowers do. Lately, lenders have become more and more skeptical about the type of property they choose to hold as collateral for these loans.

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Owner Occupied vs. Non Owner Occupied Properties

Saturday, June 7th, 2008

 

Occupancy type is pretty straight forward. Conventional mortgages are designed to help everyone buy a home, specifically a primary residence (owner occupied) .

 

When you use conventional financing to buy an investment property (non owner occupied) you are charged more by way of a higher interest rate or fees.

 

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How to Calculate Your Loan to Value Ratio

Saturday, June 7th, 2008

When you are applying for a refinance or to purchase a home the loan to value (LTV) is usually the first value a loan officer will compute. Most borrowers under estimate the ramifications loan to value LTV has on pricing and qualifying for a loan. What you really need to know here is how to arrive at the loan to value ratio. It’s pretty simple. You take the expected loan amount and divide it by expected appraisal value. (more…)

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Mortgage Advice You Should Know Before You Apply

Saturday, June 7th, 2008

Lendfast.com – Having worked in the mortgage industry for some time I have come across some pretty informed borrowers, and they are usually the ones who get the best deals. Rarely do uninformed borrowers get the “best deal”, if they are working with reputable lenders they more than likely get a good deal. However, the difference between a good deal and your best deal could be many thousands of dollars over the life of a loan. For this reason I decided to put a list of things you should know before you go. (more…)

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