Category: Lenders

COUNSEL MORTGAGE GROUP BROKERS 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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DEBT-TO-INCOME RATIO: WHAT LENDERS LOOK FOR

Debt-to-Income ratio is a comparison of monthly debts to monthly income, this is a major factor lenders consider when underwriting a loan. 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; Lenders use your gross wages, not take home, for calculating the ratio. Assume your proposed house payment is $1,000, you pay $400 in student loans and another $300 per month for an auto loan. Also suppose you have a credit card balance of $3,000 that requires a minimum monthly...

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DETERMINING MORTGAGE RATES

  How do lenders determine mortgage rates? Lenders consider many factors when determining rates; risk, credit history, loan to value ratio, and economy to name a few.   Here is a great article on lending and mortgage rate determining factors:   https://www.nerdwallet.com/article/mortgages/how-are-mortgage-rates-determined   Contact Counsel Mortgage Group. We have many qualified originators and we offer a variety of products and services. Ask us how we can assist you today.   Counsel Mortgage Group®, LLC www.counselmortgage.com 480-502-1000 NMLS #178927 AZ MB #0909580 CA DBO #60DBO43873 Copyright © 2021 Counsel Mortgage Group®, LLC.

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IS IT MOVE-IN READY AND HABITABLE?

To obtain 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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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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