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Common Questions to Getting That Home Loan
Post Your Comments Published by Patrick Warholic on October 4, 2007 at 9:04 PM.
What steps can I take to improve my chances of getting a loan?
Today many lenders are more flexible and allow a greater percentage of monthly income to go toward mortgage payments. But they are more stringent on credit card balances. Lenders often count 5% of the balance as a borrower's monthly payment, instead of the credit card’s minimum payment. If you are planning to pay off some debts before you apply for a loan, consider the ones with the largest monthly payment. Many lenders, for example, prefer to have a car loan paid off, because borrowers are not likely to go out and buy a new car right away. On the other hand, if credit cards are paid off, a borrower might start charging again.
Should I wait until interest rates drop?
Time is money. Can you afford to wait? Of course home buyers want to buy when interest rates are at their lowest. When interest rates are at near-record lows, potential buyers or homeowners looking to move up are asking themselves if the time is right to act. But no one can predict with certainty where rates are headed at any particular time. Waiting for a bottoming out may instead provide time for rates to rise.
What's the debt-to-income ratio lenders use to qualify borrowers?
Many lenders use two ratios when they decide whether to approve a mortgage. If, for example, the ratios are 28/36, the "front" ratio of 28% means the lender will allow a mortgage payment (including principal, interest, taxes and insurance) of up to 28% of the borrower’s monthly pre-tax income. The "back" ratio of 36% means all loan and credit payments cannot exceed 36% of the borrower’s monthly income.
For more information visit the California Home Network, your:
Folsom Luxury Homes and Land Specialist
Our motto is to always "Do the Right Thing", starting with providing premier executive service to buyers and sellers of luxury homes and land.
For more information from California Home Network visit Patrick Warholic, The Internet Home Marketing Specialist for free MLS Home and property searches, free real estate reports, information for sellers, information for buyers, and find out exactly what your home is worth with a free home valuation, with current up-to-date market information provided for you.
Learn how how you can be mortgage free in 8 to 11 years without re-financing. Ask for your free House Payment Free analysis.
Contact Patrick Warholic, Realtor, CCRA, SRES, ASP, and e-PRO certified.
Today many lenders are more flexible and allow a greater percentage of monthly income to go toward mortgage payments. But they are more stringent on credit card balances. Lenders often count 5% of the balance as a borrower's monthly payment, instead of the credit card’s minimum payment. If you are planning to pay off some debts before you apply for a loan, consider the ones with the largest monthly payment. Many lenders, for example, prefer to have a car loan paid off, because borrowers are not likely to go out and buy a new car right away. On the other hand, if credit cards are paid off, a borrower might start charging again.
Should I wait until interest rates drop?
Time is money. Can you afford to wait? Of course home buyers want to buy when interest rates are at their lowest. When interest rates are at near-record lows, potential buyers or homeowners looking to move up are asking themselves if the time is right to act. But no one can predict with certainty where rates are headed at any particular time. Waiting for a bottoming out may instead provide time for rates to rise.
What's the debt-to-income ratio lenders use to qualify borrowers?
Many lenders use two ratios when they decide whether to approve a mortgage. If, for example, the ratios are 28/36, the "front" ratio of 28% means the lender will allow a mortgage payment (including principal, interest, taxes and insurance) of up to 28% of the borrower’s monthly pre-tax income. The "back" ratio of 36% means all loan and credit payments cannot exceed 36% of the borrower’s monthly income.
For more information visit the California Home Network, your:
Folsom Luxury Homes and Land Specialist
Our motto is to always "Do the Right Thing", starting with providing premier executive service to buyers and sellers of luxury homes and land.
For more information from California Home Network visit Patrick Warholic, The Internet Home Marketing Specialist for free MLS Home and property searches, free real estate reports, information for sellers, information for buyers, and find out exactly what your home is worth with a free home valuation, with current up-to-date market information provided for you.
Learn how how you can be mortgage free in 8 to 11 years without re-financing. Ask for your free House Payment Free analysis.
Contact Patrick Warholic, Realtor, CCRA, SRES, ASP, and e-PRO certified.
Labels: Buying, Homes, Informational, Real_Estate, Tips
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