What is the debt-to-income ratio?

The debt-to-income ratio helps determine the maximum amount that lenders are willing to lend to you. Debt is everything that you currently owe including credit cards (food, entertainment, transportation, health care), car payments, and student loans. Income is the gross income amount before taxes including salary, investment income, and royalties. Read more…

Fixed rate mortgages

Fixed rate mortgages offer stability where your monthly payments are always the same for the full life of the loan. 30 year fixed rate mortgages are popular with home owners who want to borrow more and pay a smaller monthly payment. However, it usually comes with a higher interest payment, Read more…

Save money for the down payment

One of the biggest hurdles of buying a home is making the down payment. Besides cutting back on daily expenses and downsizing on living arrangements to save for a year or two, there are other options to consider. Secure a gift from family or friends. Loan officers prefer to see Read more…