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Qualifying Criteria That Varies By Lender

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As I have mentioned several times in my previous postings, every lender has a different set of terms for their mortgages but they also each have unique qualifying criteria. Here are several guidelines that may vary by lender:
·         Some will use 3% of the balance for all revolving credit (i.e. lines of credit, credit cards) while others will use the minimum payment that is reported on your credit report to debt service
·         Some will only allow you to add 50% of the rental income from existing rentals back to your annual income. This means that all other liabilities (mortgage, property tax, heat ext.) will be included in your debt ratio. Others will use a rental offset which allows you to deduct the liabilities from your monthly income and add the balance to the application
·         Some lenders will only lend on the value of the house plus the first 5 acres (CMHC will do the house plus the first 10 acres)
·         Some lenders have lower debt servicing maximums. Others will go up to 39% GDS and 44% TDS
·         Some lenders will accept Universal Child Tax, Child Tax Credit, foster income, child support income ext., while others will not
·         Some lenders will use $100 a month as a the heating cost for debt servicing , while others will use $75
·         Some lenders will allow you increase your documented self-employment income to qualify while others will not
·         Some lenders have a maximum amount of properties you can own

These are just a few of many different variable conditions that will determine what size of mortgage you can qualify for.
The advantage of using a Mortgage Broker is that we have access to numerous lenders and we are familiar with each of their qualifying criteria. We will place you with the right lender in order to make sure that you have the optimal application and therefore qualify for the best rates and products. Also, even if you don’t qualify with one lender, you may qualify with another.

www.christinebuemann.com

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Location: 1596 3rd Ave, Huntington, WV 25701, USA

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