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8 Ways To Lower Debt Ratios & Qualify for More

I repeat this topic from time to time b/c “Debt Ratios” weigh so heavily in our pre-approval process and b/c tight debt ratios so often prevent borrowers from buying the property they want. I explain what debt ratios are and how we calculate them in this past blog. 8 Ways to Lower Debt Ratios: Put less money […]Read More

How To Lower Debt Ratios 101

Experienced Mortgage Analysts (or Loan Officers) have many tools to lower debt ratios to help borrowers qualify for a larger loan. Here are a few that all loan officers should know: 1. Put less money down, and use down payment funds to pay off consumer debt. Mortgage debt has lower payments than consumer debt because […]Read More

How To Lower Debt Ratios 101

Experienced Mortgage Analysts (or Loan Officers) have many tools to lower debt ratios to help borrowers qualify for a larger loan. Here are a few that all loan officers should know: 1. Put less money down, and use down payment funds to pay off consumer debt. Mortgage debt has lower payments than consumer debt b/c […]Read More

Buying New Home Before Selling Old Home; Considerations

We frequently have borrowers come to us who want to buy a new home before selling their current home, so they are not left homeless. Here are the considerations and options (we address this often b/c it comes up so frequently). 1. Debt Ratios: Borrowers will need enough income to qualify for both the new […]Read More

Once Current House is Pending, Do Not Need to Count Payment In DTI

We discussed several options yesterday for borrowers who want to buy new homes before selling their current home. Debt ratios are often an issue b/c borrowers will have two mortgage/housing payments when they buy a new house. What most people don’t know, however, is that many lenders will NOT count the current residence’s housing payment […]Read More

Adjusting Take-Home Pay/Paycheck to Account for Higher Payment

The below article is in our JVM/Opes Newsletter (going out today). It is an important topic, however, and well-worth re-publishing in today’s comments. Renters are often concerned about the potential increase in their housing payments after they buy a home, even though their debt ratios indicate that they can more than afford the payment. They […]Read More

“QM” – Much Ado About Nothing?

This is the latest we have ever sent out our Daily Comments, but we didn’t want to break an unblemished streak of 4+ years of never missing. Rates got worse on a strong GDP reading but have since come back. The markets remain very volatile; rates often edge up towards the year-end. “QM” fears seem […]Read More

Major Regulatory Changes in 2014? 43% DTI & Compensation; LTVs Hold

We addressed this a few weeks ago but we are still getting questions in regard to banking and mortgage regulations (QM and QRM rules) that will be in effect in 2014. The only major effect of the new rules is to limit total debt ratios to 43% of gross income, and to limit lender compensation […]Read More

QRM: Qualified Residential Mortgage; Bad For Industry

There has been much talk about “QRM” rules in recent months and how they will affect lending. QRM stands for “Qualified Residential Mortgage,” and if it goes into effect on January 1st, it will greatly restrict the number of people who qualify for mortgage financing. This will of course adversely impact housing b/c it will […]Read More

Self-employed Income Down in 2012? Don’t File Taxes Until Necessary

We recently had a self-employed borrower in contract to buy a house with very tight debt ratios. Her income was down in 2012 and she wanted to file taxes. But if she had, her debt ratios would have ended up too high and she would have no longer qualified for her purchase. This is a […]Read More