Mortgage 80 20 was a trend, an easy access mortgage loan that a lot of us would say that this mortgage is servicing the homeowners to qualify for a mortgage and get their dream home.
What is a Mortgage 80 20 loan?
First I'll tell you what it's not, it's not your mortgage financial plan you had when you were thinking about buying a home.
Mortgage 80 20 was a popular Loan that everybody used because there was no need to put any down payment, just come and take the keys to your dream house and it's yours.
Dreams don't come easy we need to work for it, have you ever heard this saying: "what comes easy goes easy"?
That's exactly what I'm talking about, your mortgage financial plans are buying a home than pay it and own it 100%.
Good so don't think that a mortgage 80 20 loan is a mortgage that is servicing the homeowner's needs.
The first thing you need to do is to consult your mortgage broker or loan officer, if you know your mortgage broker or loan officer so listen to what they have to say.
Their mortgage financial plans for you are not a mortgage 80 20 loan, if they're good mortgage brokers or loan officers then they will recommend you on putting at least 10% down payment if not more.
If it's a refinance situation they will know not to let you maximize the ltv(loan to value)of your Loan.
During the mortgage underwriting the underwriter normally will know if you will qualify for a loan and how much you can qualify for.
mortgage underwriting is the most important issue of all and if the underwriter will not think that the file is strong enough to qualify for a loan you will not have the money.
What underwriters want you to have to qualify?
1. High income, at least double then what you spend in a month.
2. Money in the bank, so if you don't have enough money to make the payment from your salary next month at least you will have some money in the bank to make the payment.
3. That you're on title, because if you're not on title it's an occupancy issue.
4. If you own another property they will have to know, this is another occupancy issue.
5. Your credit score, it's very important that your credit will be good. The underwriters want to make sure you will make the payments on time, so if you have any mortgage late or credit cards late you need to clear them from your credit.
6. That you had the same job for longer than 2 years, they want to know that you're stable in your life and stable job is important.
The underwriters are the one to make the final call not your mortgage broker.
Good mortgage brokers will know ahead what's the underwriter will ask for from them and they will save you time in the process.
Make sure you get the right mortgage broker to help you with your project so you will not waste your time and eventually not qualify because your mortgage broker has no knowledge.
1. stay with your mortgage financial plans
2. don't even think about mortgage 80 20 (I think it's not even exist anymore)
3. your mortgage broker loan officer is very important, he can kill the deal or make the deal.
