Monday, February 13, 2012

Interview with Mortgage Broker Bill Rayman Part 1: Meeting with a Loan Officer

How can someone seeking a loan best prepare for a meeting with a loan officer? What are the items on a checklist of must have’s?

With some exceptions, every lender is looking at 4 criteria for doing a loan: 1) Collateral (the value of the home); 2) your credit – (somewhat simply the credit score, but mostly looking at overall credit history to see your level of responsibility, i.e. Do you pay your bills on time?); 3 Assets; and 4) Debt to income ratio.
Debit to income ratio is the banks’ way of determining that your cash flow is sufficient to pay them back. Ultimately, this is what the bank is concerned about because it is in essence the primary bank function: They lend you money and want you to pay them back on a regular basis. They aren’t looking to foreclosure; they don’t want more properties in their portfolio.
Demonstrating income is critical and is usually done with tax returns. If you’re owner or part owner of a company, they want to look at corporate tax returns. Wage earners are treated more leniently than a self-employed person. For the most part, I don’t know any lender who would let you be self-employed for less than 24 months.

To See the Entire Interview CLICK HERE


Or, Ask Bill Rayman More Questions at: MortgageHelpLosAngeles.com

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