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....
Author: john (John Rapasky)
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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...
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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...
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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)...
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THE MARKET’S REACTION/OVER REACTION TO INFLATION
Actually, the market reacts to two inputs for inflation: the economic numbers themselves, primarily CPI and PPI, and also the Fed’s actions, either reactive or proactive, to the inflation metrics. Current Market Drivers The US labor market is tight and supply chains stay stressed. The Russian-Ukraine war exasperates commodity pricing. The financial system...
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WHY USE A RESIDENTIAL LOAN TO FINANCE A BUSINESS?
How can you use a residential loan to finance a business? And, why would you? Business loans tend to have higher rates and costs than residential loans, and may be adjustable. The residential loan can be fixed. For instance, if you have equity in your home, or other residential properties, you could...
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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....
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STEPS TO GET STARTED
Are you considering homeownership? Are you wondering how to begin the process? Here are some steps to get started: • First and foremost, check your credit. It’s best to know your score in advance to get a good loan. Student loans, car loans, and credit cards are all items that are considered in determining your...
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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...
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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...