Step 1: Your debt-to-income ratio is calculated by adding up all your monthly debt payments and dividing them by your gross monthly income. Add up your monthly bills which may include: CAUTION: DTI ratios are extremely sensitive, and missing one important thing could be the difference between approval and denial. …
Desktop Underwriter is an automated system for mortgage underwriting that calculates whether a loan meets approval requirements. It is used by Fannie Mae or, in some cases, the Federal Housing Authority (FHA). Fannie Mae uses its Desktop Underwriter program to evaluate whether a borrower is a good risk for a …
If you are a first time homebuyer, navigating all the new information about homeownership, the home buying process, and mortgages can seem overwhelming. If you are beginning the mortgage shopping process, but have no clue as to what information you’ll need and whether or not you’ll even qualify, here is …
With the financial markets in crisis and the cost of homes plummeting, the subprime loan options that were responsible for this crash in the first place are becoming less common. But there are still lenders offering these risky loans, and this article will convince you to avoid what may seem …
First time buyers can qualify for some helpful loan terms that make getting a loan a bit easier as well as make purchasing a home more attainable. The term “first time buyer,” however, is a little misleading. While these loans are certainly available to those who have never before purchased …
Most couples who purchase a home together choose to apply for the loan jointly and take out a joint mortgage. There are some situations, however, when it may be more beneficial to apply for the home loan singly, in only one person’s name rather than both. Should you consider having …
Many people look to refinancing as a method of reducing monthly payments, taking advantage of low interest rates, pulling equity out for repairs and remodels, or consolidating first and second mortgages. And while refinancing can be a wise move, it’s not always the right time to make that move. Here …
Especially in areas where housing values are quite high, jumbo loans are a common part of the financing process. Many people have heard the term but don’t quite understand what it means or in what situation you would need to obtain one. While jumbo loans are often used for high-value …
VA home loans are designed to assist those who have served in the military with the purchase of a home. There are several requirements to qualify for a VA loan, but for those who do qualify, loan terms are often better than either conventional or FHA loans. Military Service Requirements …
Once your loan is approved, you will be ready to take the final step that will lead to the door of your new home. Many homebuyers are intimidated by the closing process, but it’s not as complicated as you may think. In fact, finding the right home is much more …
