Why So many documents…
After the subprime crash in 2008 the government implemented checks and balances that has improved sound lending practices BUT the issue with this is it comes in the form of more documents from you and your mortgage lender.
I believe, overall the regulation put in place was very needed.
There are 4 items that mortgage lenders must verify:
1. Credit - we have options for a wide range of credit scores and we can provide credit action plans to help increase crediting as well.
2. Capacity ( Ability to Repay ) - typcially you want your total debt including your house payment to be less than 45 % of your monthly gross income. We have a few programs that can go higher.
3. Collateral ( the homes value and condition ) - with an appraisal we checking the homes value AND the homes conditions. Once we receive the value I will call you to review the value and condition listed on the report. We lend based off the purchase price or appraisal whichever is LOWER.
4. Capital ( Down Payment ) - we have down payment assistance options to get you into a home for very little.
Each are equally important and without one piece many times the loan can't be done.
We are here to help you navigate documents and explain the why behind what we need.
