Tag: CPA

Post

APPRAISERS ARE LICENSED

You may get an appraisal and wonder how the appraiser arrived at that opinion, and is the appraiser qualified? Appraisers are licensed, and to be Certified, must have extensive experience and education. In Arizona, appraisers must have their fingerprints submitted for a criminal background check. If new, the appraiser starts out as a Trainee Appraiser....

Post

A MAJOR FACTOR CONSIDERED BY LENDERS

When underwriting a loan lenders look at the debt-to-income ratio for a comparison of monthly debts to monthly income, this is a major factor lenders consider. Lenders like to see the ratio at or below 43%, but loans have been approved up to 50%. Example: Let’s say you are salaried and gross $4,000 per month;...

Post

DO YOU OWN RENTAL PROPERTIES?

If you own rental properties, you can include the net rental income for qualification. But, how much of this rental income can you include? If you owned the rental for less than a year, and it does not appear on your last tax return, underwriters generally use 75% of the rental income on the lease....

Post

MEDICAL SCHOOL STUDENT LOAN DEBT

Student loan debt coming out of medical school could take many years to payoff. Lenders recognize this fact. Lenders know it may take several years for medical professionals to reach their full earnings potential. If you just completed a residency program or a medical clinical fellowship program, and your student loans are in deferment or...

Post

HOW MANY APPROVALS TAKE PLACE WHEN YOU APPLY FOR A LOAN?

Two approvals take place when you apply for a loan.  Lenders review both your credit and income, and the collateral.  The collateral must be sufficient for the loan to be approved.  What if the collateral is a condominium? When the collateral is a condominium, there is increased scrutiny by the lender. This is due to...

Post

WHAT DOES THE CLOSING DISCLOSURE CONTAIN?

The CD also contains the loan amount, interest rate, monthly payment, and amount due at closing. The Closing Disclosure (“CD”) is the latest version of the costs and prepaid expenses on the loan. The numbers on the CD are intended to be the final figures for closing. The CD must be acknowledged (typically by email)...

Post

PROPERTY VALUATIONS CAN BE MISLEADING

An appraisal is typically required when applying for a mortgage. Many people will look to the price per square foot when valuing a home, however, this valuation could be misleading. If you are purchasing a home, the lender will base the loan amount off of the lesser of the sales price or the appraised value....

Post

ARE YOU GRADUATING?

Are you graduating from college? Are you thinking about becoming a homeowner? Many  graduates feel they may not qualify to purchase a home. College education is more expensive than ever and many students leave school with substantial student loan debt. Let’s take a look at how lenders consider student loan debt when underwriting a mortgage...

Post

SHOULD YOU CONTINUE TO RENT OR COMMIT TO BUYING A HOME?

Nowadays many people question whether they should continue to rent or  commit to buying a home?  Will the mortgage payment be less than the rent payment? Most people do a financial analysis to see if this makes sense. Whether yes or no, they should consider that the principal portion of the mortgage payment is used...