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Calculating Loan-to-Value (LTV)

by Ed & Barbara Heiser | May 11, 2018 | Mortgage Approval Process

Understanding the definition of Loan-to-Value (LTV), and how it impacts a mortgage approval, will help you determine what type of loan amount and program you may qualify for. Since the LTV Ratio is a major component of getting approved for a new mortgage, it’s a...

What’s My Debt-to-Income (DTI) Ratio?

by Ed & Barbara Heiser | May 11, 2018 | Mortgage Approval Process

Debt-to-Income (DTI) is one of the many new mortgage related terms many First-Time Home Buyers will get used to hearing. DTI is a component of the mortgage approval process that measures a borrower’s Gross Monthly Income compared to their credit payments and...

What’s The Difference Between A Primary Residence, Second Home and Investment Property?

by Ed & Barbara Heiser | May 11, 2018 | Mortgage Approval Process

When applying for a mortgage, a borrower’s “Occupancy Type” is a major factor in the amount of down payment required, loan program available and mortgage interest rate. Whether you are purchasing, doing a rate/term refinance or taking equity out of...

Alternate Sources For Establishing Credit

by Ed & Barbara Heiser | May 11, 2018 | Mortgage Approval Process

While the basic Rule-of-Thumb for acceptable credit history is a minimum of four trade lines documented on a credit report, there are alternative methods of building a credit picture that an underwriter can use to make a decision for a loan approval. For potential...

Is There A Rule-of-Thumb Regarding The Number Of Credit Lines To Have Open?

by Ed & Barbara Heiser | May 11, 2018 | Mortgage Approval Process

While the actual credit score has a big impact on a loan approval, it’s not the only component of the credit scenario that underwriters consider for a mortgage approval. Since loan programs, individual lenders and mortgage insurance companies all have their own...

Ten Credit Do’s and Don’ts To Bear In Mind Prior To Getting Your Mortgage Loan

by Ed & Barbara Heiser | May 11, 2018 | Mortgage Approval Process

How can a fully approved loan get denied for funding after the borrower has signed loan docs? Simple, the underwriter pulls an updated credit report to verify that there hasn’t been any new activity since original approval was issued, and the new findings kill...
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