Don't Plan To Fail

Failing to Plan is Planning to Fail.

Mortgage qualification is heavily dependent upon debt-to-income ratios (DTI).  There are two DTI ratios that you will need to consider when applying for a home loan.

"Front-end" and "Back-end" ratios.

Your Front-end is your "housing expense to income ratio".  This is your proposed mortgage payment (Principal, Interest, Taxes and Insurance) or PITI divided by your GROSS monthly income.  Your Back-end is your "total monthly obligations to income ratio".  There are some key factors that go into understanding what is and is not included in your total obligations and what can and cannot be included in your gross monthly income; however, we will not elaborate on that in this article.

What is important to note is that these ratios have set guidelines depending on the mortgage product being considered.  Your mortgage broker/loan officer will match your financial profile with a mortgage product that is most suitable for your financial status as well as what is most likely to be approved.  What she/he cannot (and will not) do is evaluate your personal financial profile and work with you to structure that profile for underwriting.  This task is more suited for a personal financial planner; however, this individual will likely be unaware of the many different mortgage products on the market, the guidelines associate with them and which ones that your mortgage broker/lender has access to.  Even if she/he did, they do not have the experience, expertise and insight necessary to know the specific underwriting requirements of your lender.

T.E.A.M.The ultimate result is more loans generated, increased home sales, less foreclosures and generally more prosperityIn order to overcome the obvious obstacles in this process, one must somehow be able to budget their income "around" the specific guidelines of the mortgage product that is most suitable for one's financial status as well as what is most likely to be approved.  For borrowers, this is where Transformation™ steps in.

Transformation's™ proprietary budget-oriented strategies were developed by financial planners, Realtors®, mortgage brokers/loan officers, credit counselors and strategic planners.  The program operates in a T.E.A.M. (Together Each Achieves Mastery) oriented system  that affords the client the ability to preemptively face the challenges that cause loan applications to "fall out".  The ultimate result is more loans generated, increased home sales, less foreclosures and generally more prosperity for all involved (including the client).

Let Transformation™ put you on a plan to the successful ownership of your first, second or investment home.