What is cash-out refinancing? Cash-out refinancing is when you borrow more money than is owed on your existing mortgage, and you receive the difference in cash. Some borrowers choose this option to finance home improvements, pay off credit card debt or pay for college… Read Full Article Share FacebookTwitterLinkedIn
How many years of income do I need to show if I’m a self employed borrower? A lender will always require that you provide proof of income as part of your mortgage application. For example, personal/business tax returns, pay stubs or W2s give a lender an up close and personal view of your finances — which… Read Full Article Share FacebookTwitterLinkedIn
Can we roll closing costs into the loan on a purchase? This is one of the most common misconceptions in the mortgage industry. You may have heard a friend or family member mention they were able to roll their closing costs into their mortgage loan; however this is not entirely true…. 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
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