What most Mortgage Lenders
look for in a loan request



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DTI - "Debt-to-Income" may vary from Mortgage lenders to Mortgage lenders usually 33% to 45%

There are some that will allow DTI 50% to 55% with added requirements.

The simplest way to get your new house payment, based on 30 year fix loan is go with 1% of the loan amount.

A. Monthly house expense ___ ( Revolving debts, Auto payments, Alimony,Personal loan payments and Child support, with the new payment of your loan you are requesting.

divided by

B. Total monthly Income ___ = ___ %

Example

Monthly house expense $2,300 divided by total monthly income $5,800, = .396%, DTI would be 40%

A "Trade line" is a house payment, auto payment, credit card, loan payment, etc...

Three Trade Lines of at least $1,000 each, one of which, must have been rated for a least 24 months.

Or one trade line at least $5,000 that was rated for 12 months with two other trade lines.

(canceled rent checks may be used for one of the two smaller trade lines)

Some lenders have no minimum trade line however, it will lower the LTV (Loan-to-Value) and/or raise the interest rate.

Credit Score 585 or more, the higher the credit score the lower the interest rate and/or higher the LTV.

LTV - Loan-to-Value - Purchase price or Appraisal, which ever is less.

Example

1. The Borrower qualifies for 90% LTV, Purchase price is $100,000 the borrower would get a loan for $90,000.

However if the property appraised for only $95,000 the borrower would get a loan for $85,500.

2. The Borrower qualifies for 90% LTV, Purchase price is $100,000 and the property appraised for $120,000 the borrower would get a loan for $90,000

VOM - Verification of Mortgage or Rent

Most Lenders want you to have the last 12 consecutive months of canceled rent checks.

However some lenders do not require VOM.

Verification of source, or seasoned on funds to close.

Closing cost and/or down payment, funds would need to be in your checking or saving account for 30 days, or you must show where it came from.



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