Do I have to provide cancelled rent checks if I’m a first time home buyer? This question comes up quite often — and surprisingly is a make-or-break factor for a borrower when looking to get approved for a mortgage loan. When it comes to first time home buyers borrowers applying for conventional loans, the answer… Read Full Article Share FacebookTwitterLinkedIn
Do I have to pay mortgage insurance for the life of the loan? The answer is: Yes, and No. It ultimately depends upon whether you use conventional or nonconventional financing. See below: Fannie Mae (Conventional): Private Mortgage Insurance (PMI) will drop off once the loan balance reaches 78% of the original purchase price…. Read Full Article Share FacebookTwitterLinkedIn
If in the middle of the process I’ve been told my debt ratio is too high to qualify, can I then pay credit cards to better qualify? Paying off your credit cards prior to applying for any home mortgage loan is always a good idea, however it’s very common that a borrower will learn in the middle of the loan processing that they may need to lower… Read Full Article Share FacebookTwitterLinkedIn
How do Open Charge Cards (AMEX) impact my debt ratio? Traditional revolving credit cards in which your credit continually revolves month-to-month have a varying impact on your debt ratio. It really all depends on the balance of the credit card when a lender pulls your credit. An open charge card,… Read Full Article Share FacebookTwitterLinkedIn
Is it OK if I have a payment plan with the IRS? This question is very common, especially seeing as the IRS has become more and more involved in the underwriting process. These days, underwriters have begun to dig in to a borrower’s financial history and have focused in on whether or… Read Full Article Share FacebookTwitterLinkedIn
Can I exclude an installment debt like a car loan if I have less than 10 payments left? Yes. This is a great question to ask your mortgage broker when looking for creative ways to improve your debt-to-income ratio in order to get approved for a mortgage. More often than not, an installment loan (i.e. car loan or… Read Full Article Share FacebookTwitterLinkedIn