Home Financing

The Lending Environment

The lending environment has improved tremendously in recent years. Interest rates are still very low, and the debt to income ratio requirement has been eased up. Home loan lending is a crowded market. Borrowers often have to choose between multiple lending opportunities each with their own details and caveats to be considered. Working with a good loan consultant gives you an ally throughout your home financing search. At LocalVector our experienced loan consultants will explore all possible options with you and assist you in choosing the one that suites your financial situation the best.

Your LocalVector Loan Consultant

Your LocalVector loan consultant will work with you throughout the lending process and help you find the right loan to minimize your interest payments. You can speak with your loan consultant on how your credit will affect your loan eligibility. It is advised that you request a personal credit report so you will be aware of what concerns a lender might have. If there are any mistakes in your personal credit report be sure to bring them up with the loan consultant during your pre-approval process.

Debt to Income Ratio and How It Affects You

Whether you are looking to purchase a home, or refinance your existing home loan it is important that you understand what a Debt to Income (DTI) ratio is and how it affects you.  A debt-to-income ratio is a scale by which a lender determines the amount that a borrower can afford to pay back when amortized usually over 30 years. This is determined by dividing your proposed monthly liabilities by your income. The result is your DTI.

If you are refinancing then it is equally important to understand how much equity there is in your home.  This determination is known as a loan-to-value ratio (LTV) and is calculated by taking your total mortgage amount and dividing it by the value of your home. LTV is also used to calculate the amount that you are eligible to borrow from a lender. Your loan consultant will discuss with you what additional information you will need to accurately calculate your DTI and LTV and what programs will be available to you based on your circumstances.

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Contact our experienced loan consultants to discuss your borrowing needs whether you are purchasing a home for yourself or seeking to finance a real estate investment.