A term used with Adjustable Loans and Balloon Loans . The borrower may have the option to convert to a fixed rate loan, usually for a fee. For an ARM the conversion period may be limited. For a balloon, conversion often occurs on the due date. A record of your credit history detailing payments on previous debts.
Most lenders require a standard mortgage credit report from a qualified credit bureau.
Many lenders will require a written explanation of any negative items on your credit report. If there is false information on your credit report, your credit reporting company will help you to clean it up. Ratios used in qualifying for a loan. Your Total DTI ratio is calculated by dividing your gross monthly income by all of your out going bills, including your new mortgage payment plus taxes and insurance. Your Mortgage DTI ratio only includes your mortgage payment and taxes and insurance.