Stuart Crawford, BISON VENTURES - Informed Mortgage Lending

Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow. To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. Your gross monthly income is generally the amount of money you have earned before your taxes and other deductions are taken out.

In a real estate transaction, a trusted third party is hired to hold all documents and funds for both buyer and seller. This third party can be a law firm, title company, or escrow company, and the documents and funds are held “in escrow.” The escrow provider safeguards your funds and protects all parties by ensuring the terms of the purchase contract and mortgage agreement are carried out.

Loan Preapproval and prequalification are two similar terms with notable differences. A pre-qualification is an estimate of the potential loan amount a borrower could receive based on basic information provided by the loan applicant. A pre-qualification is an evaluation of a potential borrower by a lender to determine whether they can be given a loan or not and, if so, for what amount. A borrower can be pre-qualified and not receive loan approval.

Typically, borrowers making a down payment of less than 20% of the purchase price of the home will need to pay for mortgage insurance. Mortgage insurance is also typically required on FHA and USDA loans. Mortgage insurance lowers the risk to the lender of making a loan to you, so you can qualify for a loan that you might not otherwise be able to obtain. If you are required to pay mortgage insurance, it will be included in your monthly payment, closing costs, or both.

The truth is that many loan programs require low or no down payments, so we advise exploring your options with one of our Bison Ventures loan officers. For example, conventional loans can require as little as 3% down, FHA loans as little as 3.5%, and VA loans often allow for zero down payment when the house in question meets the guidelines set by the Department of Veterans Affairs.

Tax returns Pay stubs, W-2s or other proof of income Bank statements and other assets Credit history Gift letters Photo ID Renting history

Refinancing your mortgage can serve several purposes, including lowering your interest rate, lowering your monthly payment, extending, or reducing your repayment time frame or pulling cash out of your property. Since no two situations are identical, it’s important that you consult with a licensed professional, who can help to diagnose your specific situation and objectives. After we analyze your situation, we will outline some potential solutions, which will allow you to make the most informed decision. We’d love to help, so please call or email if you like to discuss your options.

Bison is a full-service mortgage company that caters to borrowers at every stage in their homeownership journey. We provide prospective and current homeowners the opportunity to find the best mortgage loan for their unique needs. Our approach is consultative, as we strive to educate our borrowers on the mortgage process, while arming them with information and options, which should allow them to make the best decision for their situation. We call our approach informed lending. To ensure the best outcome for our clients, we offer a full suite of products including Conforming conventional (FNMA / FHLMC), Jumbo, Government (FHA, VA, & USDA), Bond, 2nd mortgages, and non-QM loans.