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Important Variables in the Mortgage Application

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Important Variables in the Mortgage Application

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  1. Important Variables in the Mortgage Application Numerous factors are considered when a lender approves a borrower’s loan. Below are a few important variables that are included in your mortgage application. Credit Score This 3-digit number generally ranges between 300-850 and assesses a person's borrowing history and creditworthiness (i.e. the ability to pay back borrowed money). Credit scores are based on factors like payment history, outstanding bills, debt, etc. Debt-to-Income Ratio It helps lenders understand the borrower's ability to manage their monthly expenses and debt payments. It is calculated by dividing a person's monthly debt payments by gross monthly income. The lower the debt-to-income ratio, the higher the chances are of qualifying for the loan. Loan-to-Value Ratio This ratio assesses the amount of the loan compared to the value of the property purchased. LTV is a lending risk assessment ratio that is calculated by dividing the mortgage amount by the appraised value of the property. Collateral Details To protect themselves from the risks associated with mortgages, lender often ask for some collateral while lending a loan. The details regarding collateral are mentioned in the mortgage application. The amount lent is often less than the collateral value. 107 W. Hwy. 190 Copperas Cove, TX 76522 254-542-5100 2201 Trimmier Rd. Killeen, TX 76541 254-680-6158 14641 S. Padre Island Dr., Ste. B Corpus Christi, TX 78418 3106 S. WS Young Dr., Bldg. D, Ste. 402 Killeen, TX 76542 254-953-7000 361-949-4647 10961 Gateway Blvd. West, Ste. 200 El Paso, TX 79935 915-843-2681 1320 N. Zaragoza Rd., Ste. 111 El Paso, TX 79936 915-858-1996 2422 E. Main St. Gatesville, TX 76528 254-248-0029 201 E. Central Texas Expwy., Ste. 1600 Harker Heights, TX 76548 254-680-6155 8426 Fountain Circle San Antonio, TX 78229 210-340-0404 7348 W. Adams Ave., Ste. 200 Temple, TX 76502 254-771-0020 1980 E. Baseline Rd., Ste. 103 Tempe, AZ 85283 480-752-3110 5290 McNutt Rd., Ste. 105 Santa Teresa, NM 88008 575-589-4706 100 W. Central Texas Expwy., Ste. 300 Harker Heights, TX 76548 254-690-3765 www.fcmloans4u.com

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