Debt to Income Ratio on Home Loans

When an Arizona mortgage lender evaluates a prospective borrower's mortgage application, one of the main elements used to approve or decline each borrower is something called a "Debt to Income Ratio." What is Your Debt to Income Ratio?  The Debt to Income Ratio (or "DTI" for short) is a method used to determine how much debt a mortgage loan applicant has in comparison to their gross income.  Each different type of Arizona mortgage (Conventional, FHA, VA, USDA, Jumbo etc..) sets a maximum … [Read more...]

Buy New Home While Upside Down

If I told someone I was upside down back in the 90's they would think I was confused, lost or just nutz!  Today, everyone immediately knows that "upside down" means your house is worth less than you owe.  I receive calls on a daily basis from clients wanting to know if the fact that they are upside down on their current home will prohibit them from buying a new home.   They want to take advantage of record low mortgage rates and home prices in the greater Phoenix Area (and across the … [Read more...]