What does it mean to be an “A,” “B,” “C,” or “D” borrower?
Mortgage lenders typically use the letters of the alphabet to rate borrowers. The letters rank the level of risk the lenders perceivs:
The level of risk determines the interest rate available to the borrower. A borrower with a B, C, or D rating could end up paying a significantly higher interest rate on a mortgage than someone with an A credit rating.
What is a two-step mortgage?
Good news. A two-step loan helps a buyer really dance! Although the traditional 30-year mortgage is still the most widely-used home financing, a relatively new variation on the theme is gaining popularity:
With our experience, we can give you tips that will help you through the mortgage maze phase of home buying. Call or e-mail us for information specific to your needs.
Can you tell me about recent changes in lending procedures I should know about before I shop for lender?
Mortgage Help For First-time Buyers
FHA Makes Loans More Accessible To More Buyers
Lenders Welcome Borrowers With Open Arms
Computer Programs Rate Borrowers
If you are interested in learning more about any of these new lending procedures, call or e-mail us. We’ll be happy to assist you.
How should I go about looking for a mortgage broker?
In today’s increasingly complex mortgage market, some novice borrowers seek the aid of a mortgage broker to find the most favorable interest rate or best terms. But some unscrupulous practices have cropped up among a few brokers. To avoid being ripped off, follow these guidelines in dealing with a mortgage broker:
How strict are lenders when it comes to credit standing?
Lenders give some leeway for lateness. Is your credit less than perfect? You may still meet a lender’s guidelines for a mortgage. All credit flaws aren’t equal, and some are overlooked more easily by lenders. The most important items are:
What questions should I ask a potential lender?
If you are a first-time home buyer shopping for a loan, here are ten pertinent questions you should ask every loan officer:
We have working relationships with many local lenders and, based on our experiences, we can answer many of your questions. Call or e-mail us for invaluable assistance in selecting a potential lender.
What can you tell me about 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, 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 36% means all loan and credit payments cannot exceed 36% of the borrower’s monthly income.
Call or e-mail us for the answers to your questions. As professionals, we’ve helped people find solutions to all kinds of home-buying dilemmas.