Everyone seems to be concerned about the rate of interest on their & 39; loan and how to get the lowest possible. The answer is simple. The & 39; interest rates is directly linked to . RISK. If you want lower interest rates & 39;, d & 39; eliminate the risk of the loan to the lender. Lenders look at risk based on the same three factors qualification: equity, income and credit.
Equity Risk Factors: *
limited or no equity = Top% LTV: the mortgage loan is secured by equity & 39; & 39; in the establishment. If the property n & 39; has little or no & 39; fairness, it is & 39; d & 39; loans more risky for the poor lender.
* marketability: If you are the financing of & 39; a unique property as a cottage or a house larger or smaller than the houses in the area that & 39; it affects the market value of the house. In addition, mobile homes or houses have questions as the market value * well.
residential short story: If you & 39; have not lived in the property very long, you have very little invested in it. & 39; N You have not repaid the loan much, and now you are trying to fund it. This could be the & 39; adding debt over the debt and is considered risky by lender.
* The lack of support comparable sales value: If the auction houses are not in the field, it acts & 39; d & 39; a loan at risk of doing so. If & 39; borrower default on the mortgage, the lender May have difficulty to recover costs and investments that & 39; they took in the loan.
Income Risk Factors: * =
low-income Top DTI%: & 39; If the borrower is not a lot of money & 39; or bills that represent too much income is received, it is & 39; d & 39; a loan at risk for the lender. L & 39; borrower May have begun to choose bill that pay.
* Hard to check: There are many cases where a borrower May d & 39; do much money, but it is difficult to verify l & 39; actually & 39; money that they bring in. This is the case with many independent & 39; borrowers. To take advantage of tax laws, independent borrowers absorb as much revenue through spending as they can. This helps to avoid overpaying taxes. It hurts them, however, trying to qualify for a mortgage * loan.
short employment history or gaps d & 39; employment: The lender wants to know with reasonable certainty that the Security & 39; employment l & 39; borrower now while benefiting from the & 39; borrowing will remain in place. Job larvae or borrowers who have periods of unemployment present greater risks to the lender. What if the borrower & 39; takes a new job for less money & 39;? And s & 39; they become unemployed?
* Low disposable income: This link to the DTI%. Disposable income is what & 39; borrower ceased after all reported monthly obligations are not paid. Remember, this must cover utilities, automobile & 39;, taxes, & 39; groceries, etc. None of these costs are included in the DTI%. Low disposable income & 39; indicates the borrower is probably more extensive and therefore a more risky scenario.
loan * Unemployment / licensees borrower: Obviously, if & 39; borrower does not have a & 39; employment or a way to repay the loan, it presents a high level of risk to lender.
Credit Risk Factors:
* Late payment on the mortgage or & 39; past accounts: The mortgage lender is very concerned about the & 39; how the borrower has paid the mortgages in the past. S & 39; they have late payments in the past mortgage on the accounts, it is a good indication that it & 39; May reoccur in the future & 39;, showing a level of risk to the lender. * The
late payments on other accounts d & 39;: After & 39; mortgage accounts, lenders look at & 39; other debt obligations to see how the borrower has paid & 39; them. Although & 39; it is not often heavily weighted as mortgages, late payments on behalf of other & 39; still affect the level of risk inherent in the issue of & 39; & 39; a mortgage so borrower.
* derogatory accounts: Accounts include derogatory foreclosures, bankruptcies, charge-offs and collections. If a borrower & 39; these issues in the past, the lender must assess the level of risk and probability that & 39; it can recur in the future.
* Low credit scores: It s & 39 ; acts d & 39; an indicator that & 39; borrower has had credit problems globally in the past. The lender will lend certain amounts that are based on various scores.
* The lack of credit history & 39;: Lenders like to see a pattern of payment of & 39; story about the report credit. If & 39; borrower has little or no credit, the lender May & 39; want the borrower to put up a good payment history on d & 39; other accounts before taking the risk in l & 39; issue of & 39; a mortgage loan.
* High balances compared to limits: In general, shows that & 39; borrower is more - and extended living on credit. For obvious reasons, this is risky for the lender. Usually, this & 39; that & 39; is a matter of time before the borrower & 39; start backwards on these payments, especially if they do not change lifestyle to live within their means . ----------------------------------------------- ABOUT L & 39; AUTHOR: Tamara Schmitt is currently a loan officer with the 1st United & 39; mortgages. Tamara is also the senior official ready to obtain loans cheap, an Internet company aimed only to educate and assist consumers in evaluating & 39; and & 39; obtaining the right loan for their specific needs, and , Mortgage rates help professionals in all fields. See the site for more details & 39; articles on mortgages and refinancing, or other needs & 39; home loan. You can view Tamara page d & 39; home and see his reactions and & 39; d & 39; other articles that she wrote to the home loan information d & 39; internet business opportunities
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