Understanding credit and how it affects you in financial situations is very important. Credit is one of the biggest determining factors in getting a loan of any kind. Lending institutions and banks that loan you money want to know that you are willing and able to pay them back. They call this risk. The less… [Continue Reading]

In applying for a loan, assets are an important contributing factor. Lenders want to see that you have enough cash assets in order to make the loan workable. Some base the amount of assets they require off of your income, some just base them on the months in reserves for the loan they are looking… [Continue Reading]

In determining your maximum mortgage amount, lenders use guidelines called debt to income ratios. This is simply the percentage of your gross monthly income (before taxes) that is used to pay your monthly debts. They use two separate calculations in figuring the percentages. You have a front end ratio and a back end ratio. Front… [Continue Reading]