Tag: Ice Den

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CREDIT BUREAUS AND CREDIT CARD BALANCES

Credit bureaus look at your credit card balances and history to determine how you manage your discretionary spending. The credit bureaus do not know your spending habits, but by reviewing credit card balances, they make conclusions regarding your ability to manage credit which will affect your credit score. If the cards are “maxed out”, or...

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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;...

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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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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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FIRST TIME HOMEBUYER PROGRAMS

There are a lot of programs that market to first time homebuyers. The most popular one is down payment assistance, no money down program; we broker this program. Many banks and lenders tout how great this program is by allowing people who have never owned a home before, to get in the home with no...

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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...

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INTEREST ONLY JUMBO LOAN PRODUCTS

We offer many jumbo products, including primary residences, second homes, and investment properties, we can offer 5% down jumbo on primary residences. We also have an interest-only jumbo product available. The jumbo rates we are seeing are comparable to conforming rates. In the past when we would encourage borrowers to stay at the conforming loan...

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NO MONEY DOWN LOANS INTEREST RATES

Many lenders will try to sell you no money down loans, or down payment assistance loans, but it is likely that these loans will have higher interest rates and more costs. If you can come up with a down payment, in some instances as little as 1% of the sales price, you may be able...

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WORKING WITH A LOAN ORIGINATOR

The closer you work with your loan originator, the quicker the loan will move through the process. What is involved in the process? Step One: Complete the loan application; Lenders require a fully completed application. This includes providing a 2 year residential and employment history. Lenders will email the Loan Estimate to you within 3...