The mortgage process is not that difficult to understand but it can be to lenders that do not provide good quality service. Getting a proper pre-approval and to work with a mortgage company that will work tirelessly for you is important. We become your team and get you to the finish line.

The first step in getting a loan is to know how much money you can borrow from a lender and getting pre-approved. Things to prepare for will be to know your income, credit, assets & liabilities that you will need to provide to your Loan Officer in order to figure out how much you can borrow.

It is highly suggested you do this first before meeting with a realtor. This way you are confident with how much home you can buy and you can close your loan in 30 days or less, typically.

The Loan to Value is a percentage of the loan amount to the appraised value of the home.

The typical FHA loan program allows a borrower with good credit to obtain up to 96.5% of the appraised value of the home.

VA loans & USDA loans can go up to 100% of the appraised value of the home.

We also have 100% financing available for qualified borrowers. (First and a second mortgage split)

Many lenders have different programs that have flexible Debt to Income ratios. Knowing your ratio is determined by knowing your income and dividing it by your debt.

Your Loan Officer will review your credit with you and uncover the liabilities on your credit report and compare those figures with your income. Then the property taxes, insurance, and homeowners association dues (if any) are included in the calculation.

FICO (Fair Isaac Corporation) scores are used by all mortgage lenders in order to obtain an approval decision and reflects the credit risk of the applicant, or borrower.

The credit score is determined by many factors such as payment history, credit usage (the amount of credit used), types of credit whether it is revolving credit or installment loans, credit inquiries, and more.

When you are ready to apply for a loan, be careful how many times your credit is pulled. Shopping around can be dangerous to a credit score. A Loan Officer at a mortgage brokerage can pull it once and use it with multiple lenders. A bank will only use it for their own needs. If you go to another bank they will repeat the process and your score will start to drop.

Self employed borrowers have the most difficulty with obtaining loans due to tax returns or difficulty showing steady and consistent cash flow. Borrowers who are employed for companies get a pay stub so it is easier to verify that income.

Bank statement programs have been very useful for self employed borrowers. Lenders can use 12 months or 24 months of bank statements and average the income to come up with a monthly income used for qualification purposes.

Lenders want to see borrowers have "skin in the game" or a minimum required investment. You would also need to show additional funds for reserves and closing costs.

Typical seasoning (time to hold the money in the bank) is 2 months for most lender programs.

"Gift funds" are another option and are allowed by an acceptable source or donor.