What is a “good faith” estimate?
What is a cash-out option?
What is a housing to income ratio?
What is an appraisal and who completes it?
What is an impound/escrow account?
What is an income to debt ratio?
What is an owner’s estimate of value?
What is a PITI?
What is a PMI?
What is prequalification vs preapproval?
What is roll in refinancing?
What is the difference between an equity line of credit and another type of second mortgage?
What are closing costs?
What are income, debt and mortgage payments?
What are prepaid interest and impound/escrow funds?
What are rates, terms and APR?
What is “locking in a rate”?
What is a mortgage?
What is a amortization?
What is equity?
To determine your qualification, the first thing PacAlly will do is divide the monthly payment of your proposed loan by your gross monthly income. This provides your housing-to-income ratio. If the resulting percentage falls within a certain range, the next step is to divide your total monthly debt by your gross monthly income. This provides your debt-to-income ratio. Again, if the ratio falls within prescribed limits, you are qualified for the loan.