Category: Lenders

SUSPENSION DOES NOT MEAN DENIED

A loan suspension means the loan package submitted to the lender does not meet guidelines. The file is suspended to give the borrower time to provide documentation to bring the file within guidelines. For instance, a suspension may be issued if the debt-to-income ratio is too high. The underwriter may ask for further income and expense documentation to determine if the ratio can be figured within guidelines. Or, the documentation provided does not support the numbers in the loan application so the underwriter will request additional documentation. Importantly, a suspension does not mean a denial. Where a denial will mean...

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IS IT HABITABLE AND SAFE?

To get a mortgage a property condition must be habitable and safe.  A residence must be move-in ready.   We get asked frequently, “What is considered habitable?”  Click link below for a list of items that a lender will use to determine habitability.

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WHAT DO LENDERS LIKE TO SEE?

  Lenders like to see a debt-to-income ratio at or below 43%, but loans have been approved up to 50%.   You may have heard of the term debt-to-income when applying for a loan; what does it mean? Debt-to-Income ratio is a comparison of monthly debts to monthly income, this is a major factor for lenders consider when underwriting a loan.   How about if you don’t have a job? You may still be able to qualify as there may be other sources that can be considered as income, such as rental income, social security, and pension.

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NEVER TOO OLD!

  You’re never too old, age is not a factor when applying for a mortgage loan. Lenders cannot discriminate based on age.  So, even if you are 100 years old, and can qualify for the payment, you can get a 30-year mortgage.

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HOW DO LENDERS VIEW MEDICAL STUDENT LOAN DEBT?

How do lenders view medical student loan debt? Student loan debt coming out of medical school could take many years to payoff. Lenders recognize this fact, and have come up with programs to help doctors qualify for mortgages without regard to this debt. Lenders know it may take several years for doctors to reach their full earnings potential. As a result, they are willing to work with new doctors to qualify them for higher loan amounts in expectation of these increased earnings. If you are a doctor who just completed a residency program or a medical clinical fellowship program, and...

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I HAVE STUDENT LOAN DEBT, CAN I QUALIFY FOR A HOME LOAN?

College education is more expensive than ever. Many students leave school with substantial student loan debt. They may feel that they cannot purchase a home. Let’s take a look at how lenders consider student loan debt when underwriting a mortgage application. If the monthly payment for the student loan appears on the credit report, it will be used in calculating the debt-to-income ratio. If the credit report does not reflect the correct monthly payment, the undewriter may use the monthly payment that is on the student loan documentation. If the credit report does not provide a monthly payment, or shows...

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WHAT MATTERS TODAY IS LOAN SALEABILITY

When our parents and grandparents went to the local bank years ago to get a loan, they would meet with a banker who may have known them and they would apply for a loan. The banker would consider many factors, including their personal relationship, to approve the loan; this is not the case today. Today, it is about the saleability of the loan. Loans are sold in the secondary market. When the loan is underwritten, it is reviewed with an eye towards meeting the investor’s specific requirements to sell the loan. For example: If the investor needs 3 pay stubs,...

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HOW OLD IS TOO OLD?

Lenders cannot discriminate based on age. So, even if you are 100 years old, and can qualify for the payment, you can get a 30-year mortgage. This applies regardless of whether it is a forward mortgage or a reverse mortgage. A forward mortgage is the mortgage you are familiar with, I.e. you make monthly payments. However, if you are 100 years old, you may want to consider a reverse mortgage so you don’t have to make payments on the mortgage out-of-pocket, instead the equity in the home makes the payments. So, regardless of your age, you can buy that new...

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WE BROKER LOANS TO SELF EMPLOYED HOMEBUYERS

There is some conversation out there that if you are self-employed, you cannot qualify for a loan; well, this is just wrong. If you have been self-employed for at least 2 years you may be able to qualify for a loan. Lenders will take the average of your net income over the last 2 years as reported on your tax return. This income can be reported in a variety of ways. For example: – On the Schedule C of your 1040, or Schedule K-1 if you file an S Corporation or Partnership return. They’ll also consider wages you pay yourself...

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