Flashcards in General Knowledge 2 Deck (25):
Housing expense on the borrowers principal residence, all revolving charge accounts, installment loan debt’s and lease payments are all examples of what?
If installment loan debt with less than _____months left on it, then the underwriter does not have to consider it in the borrower debt to income ratio.
Real estate loans, HELOCS, alimony and child support, maintenance payments and all other debts of recurring nature are examples of what?
Our utility bills and cell phone payment is considered liabilities?
Are insurance payments, tax payments and union dues considered liabilities?
Are voluntary deductions on paystub’s such as 401(k) contributions, considered liabilities?
Debt to income qualifications on a conventional loan.
Debt to income qualifications or an FHA loans.
Debt to income qualifications on VA loans.
Back end DTI of 41% with residual income calculation
Debt to income qualifications for a USDA loan.
Another term for the “Front End” DTI
The ______ _____ On DTI is only the borrowers housing expense compared to their income.
Another term for back end of DTI.
The ______ ______ on DTI is all of the borrowers liabilities compared to their income.
Loan to value equation.
Take the loan amount and divide it by the borrowers purchase price or the properties appraised value, which ever is lower
If you take the loan amount and divide it by the borrowers purchase price or the properties appraised value, whichever is lower.
What does this equation equal?
LTV Or loan to value
What are the three bureaus that a credit score can be pulled from?
Experian, Equifax and Transunion
In a situation where a borrower is qualifying for a mortgage the lender is going to pull a __________ meaning they’re going to pull the report and scores from all three bureaus.
Generally the underwriter is going to take the lowest __________ credit score of the borrowers.
When an underwriter takes the lowest middle credit score of the borrowers this makes up what score?
Credit scores can range from ______ to _________.
What are the four things included in your credit score?
2. Amounts owed
3. Credit mix
4. New credit
When it comes to credit scores, what does credit mix mean?
How many different types of accounts you have.
When it comes to credit scores, what does new credit mean?
The age of your credit, have you recently open new credit, etc.