Below is a list of the most frequently asked questions regarding topics that people have inquired about in the past. We at Assured Capital Funding want to hear from you. If you have a question that you do not see an answer to below, please send us a note using the form below and we will reply to you as soon as possible.
CAN I QUALIFY FOR A MORTGAGE?
The first question is whether you can qualify for a mortgage. One of the key factors in determining this is your debt-to-income ratio. For example, if a loan program uses a 48/55 qualifying ratio, this means you are not allowed to spend more than 48% of your gross (pre-tax) income on monthly mortgage payments and no more than 55% on total debt. Total debt includes car and school loans, credit cards, child support, and alimony. So, if you earn $60,000 per year, your monthly gross income is $5,000. Under the 48/55 guidelines, your maximum monthly mortgage payment should not exceed $2,400 while your total monthly debt should not exceed $2,750.
HOW MUCH HOME CAN I AFFORD?
Next, you’ll need to calculate what you can afford. For example, how much do you have to make a down payment—and how much are you willing to put down? Down payments are typically paid in cash and are a percentage of the selling price. If you are able to make a down payment of 20 percent or more, you can save money and avoid paying for mortgage insurance. However, if you don’t have 20 percent, there are many other affordable mortgage options that exist.
WHY DOES MY CREDIT MATTER?
Everyone wants a good mortgage rate, and one of the most important factors in getting that favorable rate is your credit score. Read on to learn more about your credit score, how it is determined, and how to improve it.
WHAT DOES MY CREDIT SCORE MEAN?
Your credit score is a uniform way for lenders to determine how credit- worthy you are. If you’ve got a high score, a lender may consider you low risk, meaning they’ll give you a lower rate on a mortgage. It is essential to have the best credit score possible to get the most favorable rate on a mortgage.
While some lenders may classify scores slightly differently, below is a general rule of thumb for how a certain lender may evaluate your score.
Credit Score Grade
800 – 850: A+
750 – 799: A
700 – 749: A-
650 – 699: B
600 – 649: C
550 – 599: D
500 – 549: E
300 – 499: F
When you have an Assured Capital Funding loan officer by your side, you’ll be guided through every step of the mortgage process to make you feel comfortable and right at home with this important life decision.
HOW DOES THE HOME LOAN CLOSING PROCESS WORK?
Closing day is exciting, because it’s the day you’ll become an actual homeowner. But it can also be stressful—there are many details to manage. Rest assured that Assured Capital Funding will manage all these details so your closing will be a success!
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