As a national provider of compliance and document software, DocuTech is often relied on by the media to explain to consumers how the mortgage industry works. This month, COO Scott K. Stucky participated in a panel of experts with NerdWallet.com, a leading personal finance website for technology professionals, to demystify the underwriting process for first-time homebuyers.
Scott explained how great lenders nationwide are really looking for three things:
- Ability to pay;
- Willingness to pay; and
- Quality of the collateral”
You ability to pay is determined by your Debt to Income ratio, or DTI. There are specific guidelines about how high this ratio can be, depending on the loan program you choose.
Your willingness to pay is determined by your credit score and credit history.
And the quality of the collateral depends on the appraised value of the home you intend to buy.
Read the rest of the panel’s advice at nerdwallet.com: (http://www.nerdwallet.com/blog/finance/2012/3-key-concepts-time-homebuyers-underwriting-documentation-nonmortgage-costs-2/)