AFFORDABLE HOUSE PAYMENT: Gross monthly income times 0.30.

REASONABLE BILLS: 10% of Gross monthly income. If the monthly bills - car payments, credit cards, student loans, child support obligation, etc. (utilities and child care are not counted) exceed 10%, it will have an adverse effect on the AFFORDABLE HOUSING PAYMENT.

TOTAL MOVE IN EXPENSE:
FHA 3 - 5%
VA 0 - 3%
95% Conventional 5 - 8%
90% Conventional 10-13%

HOUSE PAYMENT: About 1% of the loan amount. This should include Principal, Interest, Taxes, Fire Insurance and Mortgage Insurance.

CREDIT: Lenders are understanding.... address the explanations for any derogatory credit with common sense and back-up documentation whenever possible.

SELF EMPLOYED: Unless the self employed individual is making a "significant" down payment, the underwriter will be looking for two full year’s 1040’s.

PREPARATION TIPS: Lenders like to make loans based on common sense and documentable income, be as thorough as possible in gathering your income, expense and credit data. This will make the process a lot easier and less stressful.
 

   Do's and Don'ts of Mortgage Loans

   Mortgage Glossary

Mortgage Loans Do's and Don'ts

Do...

 Do save every paycheck and all pages of bank statements throughout the process

 Do run all monies through your checking and savings accounts

 Do pay-off outstanding credit accounts immediately, and keep documentation

 Do document all irregular deposits into your checking account or savings account

 Do keep all documentation

Do obtain proof your gift came from the donor (copy of donor’s account statement and check)

Do obtain gift funds at least 2 months before closing 

Do return your initial disclosures to imortgage.com immediately 

Do document any liquidation of stocks, savings bonds, 401k loans

 Do make all payments on time

Don't.....

Don’t make any job changes without notifying your loan officer

 Don’t cash your paychecks (deposit paychecks into your account)

 Don’t wait to pay off any outstanding credit accounts

 Don’t throw away any documentation until the loan process is over

 Don’t trade in or buy a new car without notifying your loan officer 

Don’t open any new credit accounts without talking with your loan officer

 Don’t wait until the last minute to provide requested documentation

 Don’t borrower money for your down payment

 Don’t save money outside of your checking or savings account 

Don’t miss any payments on current liabilities

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