Posted by: Roby Robertson | September 30, 2008

Lake Norman Real Estate,Buying a Lake Norman Home and confused about a loan

You can find a good Buy in the Lake Norman Area but understand these factors about a loan

Lake Norman Lenders lending money

Debt-to-income ratio

Lenders need to be sure that you can repay your loan. So they use a calculation called your “debt-to-income ratio” to help them figure out where you stand. You can determine your debt-to-income ratio by adding up your monthly debts and dividing that amount by your monthly income. A debt-to-income ratio under 20-30% is usually considered good and will help you be seen as financially secure.

If you’re not hitting the 20-30% mark, try to lower the amount of your monthly debt. Create a monthly spending plan to help you save money. You’ll want to shrink your debt as much as you can before you apply for your loan. You may also be able to increase your income by co-signing with your spouse.

Loan-to-value ratio

Another thing that will affect your interest rate is the loan-to-value ratio. This ratio helps you work out how much you can afford to borrow (at the best rates). All you do is divide the loan amount by the property’s value. If your loan-to-value ratio is above 80%, your rates could jump up quite a bit.

So the trick here is to make sure your loan-to-value ratio is below 80%. You can do that by finding a less expensive home or saving for a bigger down payment.
Keep these big factors in mind as you prepare for a loan, and you can enjoy BIG savings on your new home.

I have multiple lenders that I partner with that can assist you.

For additional information on how I can help, contact your Lake Norman Agent at 704 451 7051 or by email.

See also:

Lake Norman Golf and Waterfront Communities

Be The First To See Lake Norman Hot New Listings as soon as they become available.

What would my Lake Norman Home Sell For?

Why Lake Norman is such a great Destination

Roby Robertson


Saving My Clients Thousands



Real Living In Style
Davidson NC


Ph: 704 451 7051
Fax: 704 892 9766

Committed to Saving My Clients Thousands When Buying and Selling Real Estate


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s


%d bloggers like this: