|
|
| |
 Frequently
Asked Questions |
|
- How long does it take to complete my loan ?
- What is Loan to Value?
- What is an income ratio?
- What are credit scores?
- What do you consider for Assets ?
- When is most important on my credit history?
It usually take from 3-4 weeks, but can close as fast as a
week if borrower has all documentation ready and appraisal is complete or not
needed.
LTV or Loan to value is the amount of the owed balance
divided by the value of the home...giving you Loan to Value or LTV. Example: Owe
140,000 home is worth 200,000 (140,000/200,000=.70) or 70% LTV
DTI -Or debt to Income ratios, are the amount of gross
household income of all borrowers calculated monthly divided by the amount of
total monthly obligations. Example 4,000 a month income 1600.00 a month in
obligations=40% DTI.
Credit score -- A
number, roughly between 300 and 800, that reflects the credit history detailed
by a person's credit report. Lenders calculate this number with the assistance
of computer systems as part of the process of assigning rates and terms to the
loans they make.
|
Assets-Anything
that has monetary or exchange value that is owned by an individual,
business or institution. Assets include real estate property, personal
property, vehicles and enforceable claims against others (including bank
accounts, stocks, mutual funds, and so on). A lender is very interested in
the amount and value of any assets you may have because assets can be used
as collateral against a loan. |
The most important thing on your credit history are your
mortgage payments, we have many loans that only take into consideration mortgage
history and disregard consumer credit. If purchasing for the first time the most
important thing will be a combination of documentable rental history and credit
scores.
Copyright © 2004 [ 200lenders.com ]. All rights reserved.
Revised: February 12, 2008
.
