Calculating debt ratio is one of the key elements in getting a mortgage. The formula is basic math: total monthly payments divided by total income (payments/income) When you apply for a mortgage, you’ll need to meet maximum DTI requirements so your lender knows you’re not taking on more debt than you can handle. Lenders prefer…
THomebuyers need to be prepared for closing costs on home purchase transactions. On all home purchase transactions, there are down payment requirements and closing costs. The down payment on a home purchase is a fixed percentage amount. For example, FHA loans will require a 3.5% down payment on the home purchase price. Fannie Mae and/or…
Many homebuyers are often confused when shopping for a home loan and the difference between Government Versus Conventional Loans. There are different options on the type of home mortgage borrowers can get. There are times when a borrower may qualify for a government loan but not a conventional loan. Each loan program has its own…
What are the chances of getting denied after pre approval? A mortgage loan should never get denied. Once a loan officer issues a pre-approval letter, the loan should close. A loan officer should never issue a pre-approval letter if he or she thinks there is a one percent reason for loan denial. If a loan…
One of the most frequently asked questions we get at Capital Lending Network (CLN Mortgage) is how much money do I need to buy a house? Most Americans can easily afford the monthly payment on a new housing payment. However, coming up with the down payment and closing costs listed in a closing disclosure is…
All lenders use the automated underwriting system on government and conventional loans before proceeding to the next step of the mortgage process. The automated underwriting system is commonly referred to as AUS. There are two different versions of the automated underwriting system: Fannie Mae’s Desktop Underwriter commonly referred to as DU Freddie Mac’s Loan Prospector…
This Article Is On Correspondent Lending Versus Wholesale Lending By Mortgage Brokers Understanding the difference of Correspondent Lending Versus Wholesale Lending By Mortgage Brokers. Most borrowers will consult with a licensed loan officer when they need to apply for a mortgage. However, not too many consumers know whether the loan officer works for a correspondent…
Credit scores is one of the most important factors during the qualification and pre-approval process. Credit scores determine whether a borrower qualifies for a mortgage. All mortgage programs have a minimum credit score requirement. For example, HUD, the parent of FHA, requires a 580 credit score for a 3.5% down payment home purchase FHA loan….
This Article Is About What Is The Difference Between Mortgage Brokers Versus Mortgage Bankers What Is The Difference Between Mortgage Brokers Versus Mortgage Bankers is a question many borrowers often ask. Should borrowers go to a mortgage broker or a mortgage banker to qualify for a home mortgage? Is a loan officer from a mortgage…
This Article Is On Loan Level Pricing Adjustments To Rates On Home Mortgages Mortgage rates are at historic lows. After the Central Bank lowered interest rates to zero percent, mortgage rates started to tumble like never before. 30-year fixed mortgage rates are under 3.0% while 15-year fixed rates are under 2.5% for prime borrowers. The…