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Mortgage Information

Qualifications and Requirements

Employment		Provide most recent YTD paystub and most recent 2 year’s W-2’s (for non LC employment) Self-Employment ”“ 2 years signed tax returns
Credit Score	680	Minimum ”“ will check for late payments and type of debt. Concerned if large portion of Credit Card debt. Full Credit Report will be required.
Credit Issues		Possible Denial: Previous Mortgage Foreclosure within 3 years Bankruptcy discharge plus 2 years Late Mortgage payments in last 12 months: 3 or more > 30 days 1 > 60 days and 1 >30 days 1 > 90 days late
Debt to Income Ratio	32% / 38%	32% of Gross Monthly income for max PITI (Principle, Interest, Taxes and Insurance) 38% for all bills including PITI
Liabilities	Verify	Debt on Credit Report Alimony, Child Support Mortgage debt on other properties owned Installment Debt (autos, student loans) Significant debt (>$100/mo) not on Credit report
Assets	Verify	Depository Accounts Cash Reserves Gift funds Retirement accts Proceeds from Sale of home / assets Earnest Money
Earnest Money	$5,000	Refundable
Down Payment	10% Min.
Reserves Required	2 mo. PITI	Retirement funds can be counted towards reserves but will be valued at 70% because of penalty and taxes. (PITI = Principal, interest, taxes, insurance)
Interest Rate		Interest rates will be based on an average 30-yr fixed rate for Chase, Wells Fargo and US Bank with comparable down payments within 15 business days prior to signing the final documents.
No Escrow for Taxes and Insurance		Property Taxes and Insurance to be paid directly by homeowner. Proof of insurance and payment of taxes are required annually.
ACH Payments		All mortgage payments will be required to be made via ACH directly to the College

Interest Reporting		Form 1098 Mortgage Interest - will be sent to mortgagee prior to January 31 each year for the previous year
Required Paperwork		Loan Application Contract of Sale Ground Lease Authorization for Credit Check ACH Payment Authorization