As the economy of the USA continues to rebuild after the recession that hit the whole world almost 9 years ago, many people are now looking forward to buying their homes after they have spent years in a rented house or on any older house.
Due to that reason, the market of real estate has become very competitive in most parts of the USA, requiring every buyer to put aggressive offers. In a few places, people often have to compete with certain deep-pocketed investors who are paying cash.
What that means to average buyers that now you have to qualify for your mortgage before looking for any real estate shopping.
Therefore, it is very much necessary to have a Mortgage Expert like Jill Burgess on your side while seeking for the best Mortgage Greensboro. The underwriter will therefore look at your details with the following basic criteria in their mind:
- Your capacity to repay your loan
Lenders will like to know whether you have sufficient income to cover the expenses of the mortgage payment. To find that, lenders will check your ratio of debt-to-income and that should be a maximum of 36% or less.
- Your probability to repay your loan
Your past payment history, as well as your credit score, will be the main focus as they are the basic indicators for any lenders to check your likelihood of making payments in the coming future.
- Your home’s value
The home value that you are buying will be carefully checked to know the loan-to-value ratio. To qualify for your loan, lenders will prefer that the loan-to-value ratio must not be greater than 80-95%.
- Your down payment money source and amount
If the amount that you will pay as a down payment happens to be less than 20%, then you have to pay for private mortgage insurance that increases your monthly installment for your mortgage payment.