Blog Category: mortgage qualification

August 31st, 2015 rules
August 31st, 2015

Contingent Liabilities Counting Against A Mortgage

Contingent liabilities are potential liabilities. For example, if a parent guarantees a child’s car loan, the parent has a contingent liability. If the child makes the car payments and pays off the loan, the parent will have no liability. If the child does not make the payments, the parent will have a liability. The same scenario would hold when one party co-signs a mortgage for another party. Having a liability like this show up on your credit report can count against you when qualifying for a mortgage. This is the case even if the Read More

Categories & Tags Loan Process, , , 2 Comments »

July 28th, 2016 calculator with house on it
July 28th, 2016

How A Mortgage Calculator Can Keep You Out of Trouble

 

If you type “Mortgage Calculators” into Google you will get over 2 million results and Google’s simple mortgage calculator at the top. The Google mortgage calculator will give you a rough idea of mortgage monthly payments based on a simple calculation of the interest rate and mortgage term. It doesn’t answer any details, like: how many payments do I have to pay in order to pay off my mortgage? In 15 years how much mortgage will I have left to pay if I increase my monthly mortgage payment? What happens if you want to increase or decrease the interest rate, or change the amount of years of your home loan? With all the mortgage loan calculators out there isn’t it best when you can see the big picture of your home loan payment and how it can work for you. Read More

Categories & Tags mortgage, , , , , , , , , , , ,

September 24th, 2012 credit cards
September 24th, 2012

Paying Off Credit Cards Monthly

There is a new underwriting rule change that is going to be very painful for mortgage borrowers. It has to do with open 30 day charge accounts. This relates to paying off credit cards monthly. The rule says for open 30 day charge accounts that do not reflect a monthly payment on the credit report, or 30-day accounts that reflect a monthly payment that is identical to the account balance, lenders must verify borrower funds to pay off the account balance. The documented funds must be in addition to any funds required for closing costs and cash reserves. This is very important. It used to be Read More

Categories & Tags credit, Underwriting Rules, , , ,