Let’s begin by addressing what a debt to income ratio is. It’s pretty much like it sounds. It’s factoring in your monthly payments plus the proposed mortgage payment (PITI = principal, interest, taxes and insurance) and home owners dues, if any. Your monthly gross income that is used for qualifying is divided into the monthly debt which produces your DTI (debt to income ratio).
Coming Soon: 2015 Property Tax Bills
January 31, 2015 by Leave a Comment
In a couple weeks, King County along with others, will begin posting property tax bills for 2015. This may be a non-event for most…unless you’re in the process of buying a home and your debt-to-income ratios are tight. It’s possible that should the tax assessor decide the home you have a contract on now or during the next month has a higher value, and therefore a higher tax bill, that this may jeopardize some loan approvals and/or transactions.
Tips on how to save up for a down payment
December 19, 2014 by Leave a Comment
Get Rich Slowly recently posted How to Save Up for a Down Payment Fast. I’d like to respond to some of the ideas offered in GRS’s post from a Mortgage Professional’s viewpoint and offer my advice.
Here are some of the suggestions on How to Save Up for Down Payment Fast along with my 2 cents (in italics).
CFPB’s Qualified Mortgage Rule and the Ability to Repay
January 10, 2013 by 10 Comments
Today the CFPB released the “ability-to-repay” and “qualified mortgage” rule which is set to go into effect next year on January 10, 2014. These new laws will require that lenders consider a borrowers ability to repay a mortgage.
