Large Bank Deposits and Mortgage Approval: What Borrowers Should Know Mortgage underwriting requires lenders to verify the funds used for a home purchase. One lesser-known guideline under Fannie Mae’s asset verification rules involves large or unusual deposits appearing in…
Fannie Mae vs. Freddie Mac: Key Differences That Can Affect Mortgage Approval Most borrowers have heard the names Fannie Mae and Freddie Mac at some point during the mortgage process. What many people do not realize is that these organizations…
Low Down Payment Conventional Loan Options: What Borrowers Should Know A common belief among homebuyers is that purchasing a home requires a 20 percent down payment. While a larger down payment can certainly provide advantages, it is not a…
Understanding the 25 Percent Rule for Commission Income Commission income is common in many professions. Sales professionals, financial advisors, real estate agents, and many technology employees earn a portion of their compensation through commissions or incentive pay. When applying…
Using Rental Income to Qualify for a New Home Purchase Many homeowners assume that when they purchase a new home, they must sell their current residence first. While that may be the right choice for some situations, it is…
When Installment Debt Can Be Excluded From Debt-to-Income Calculations Many borrowers preparing for a mortgage assume that paying off debt before applying will automatically improve their chances of approval. In some cases that is true. In others, the impact…
Mortgage Reserve Requirements Under Fannie Mae: What Borrowers Should Know When most borrowers think about qualifying for a mortgage, they focus on income, credit scores, and down payment. Another factor that plays an important role in many approvals receives…
Mortgage Job History Requirements: What Fannie Mae Actually Looks For Employment history is one of the first things borrowers think about when applying for a mortgage. A common belief is that a borrower must remain with the same employer…
When One Year of Bonus or Overtime Income May Be Enough for Mortgage Qualification Bonus and overtime income are common components of compensation. For many borrowers, they represent a meaningful portion of annual earnings. Yet when it comes to mortgage…
When a Higher Debt-to-Income Ratio Can Still Be Approved Debt-to-income ratio, commonly referred to as DTI, is one of the most discussed numbers in the mortgage process. It is also one of the most misunderstood. Many borrowers assume there…
