Can we use his income but my credit? The answer is: No. If you are the borrower on a mortgage loan than it is your credit that will be used to determine the applicable interest rate. You are not able to mix and match. This is universal no… Read Full Article Share FacebookTwitterLinkedIn
Can we use my higher credit score to qualify for a better rate without using my spouses? The answer is: No. If you and your spouse are applying for a home mortgage loan, an underwriter will look at each of your three scores and select the lower middle lowest score when determining the applicable interest rate. This… Read Full Article Share FacebookTwitterLinkedIn
What is Hazard Insurance referenced on my estimate? This is simple. Hazard insurance is just another way of saying home insurance. See below: Fannie Mae (Conventional): Hazard Insurance is another term for Homeowners insurance policy Freddie Mac (Conventional): Hazard Insurance is another term for Homeowners insurance policy FHA:… Read Full Article Share FacebookTwitterLinkedIn
Am I allowed to get a gift for closing costs and down payment? If so, who am I allowed to accept gifts from? The answer to this question is a resounding: Yes. Lenders these days realize that coming up with the money needed for a down payment or closing costs is no easy task, which is why many borrowers are able to factor… Read Full Article Share FacebookTwitterLinkedIn
Can I exclude existing debts listed on my credit profile if my business pays for the debt each month? This is a very common question for self-employed borrowers who are trying to qualify for a home mortgage loan. For example, a borrower who got a loan for a truck in their own name, but pays for the truck using… Read Full Article Share FacebookTwitterLinkedIn
If the house I am buying appraises for higher than what I’ve agreed to pay for it, does this unexpected equity in the home mean I can apply it towards my down payment and therefore put less of my own money down? If you’re in the middle of mortgage loan processing and you find out the home you’re buying appraises for more than the amount you agreed to purchase it, one would only think you could use that “unanticipated equity” to not… Read Full Article Share FacebookTwitterLinkedIn