Monday, February 4, 2013
Friday, January 25, 2013
Monday, January 7, 2013
Mortgage Monday: Payment Shock
What is payment shock and how does it affect your mortgage approval?
When the underwriter is reviewing your mortgage application, they will look at what you are paying for your current rent or mortgage compared to what your new estimated mortgage payment will be. If the new payment is estimated at a considerable amount higher than what you are currently paying, it is considered “payment shock”.
What do the underwriters look at to counter this payment shock? If your new payment will be increasing by $500/month, underwriters will look to see if you have been able to maintain at least this much in liquid assets. If you haven’t, it’s not to say that you won’t be able to get an approval on your application, but they will then review the rest of your file to see what other positive factors you have.
Contact me today for more information.
Danielle Hifko
New American Mortgage
910-581-6398
When the underwriter is reviewing your mortgage application, they will look at what you are paying for your current rent or mortgage compared to what your new estimated mortgage payment will be. If the new payment is estimated at a considerable amount higher than what you are currently paying, it is considered “payment shock”.
What do the underwriters look at to counter this payment shock? If your new payment will be increasing by $500/month, underwriters will look to see if you have been able to maintain at least this much in liquid assets. If you haven’t, it’s not to say that you won’t be able to get an approval on your application, but they will then review the rest of your file to see what other positive factors you have.
Contact me today for more information.
Danielle Hifko
New American Mortgage
910-581-6398
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