Underwriting standards vary from lender to lender because the underwriters who examine loan applications are flesh-and-blood human beings, not machines. At US Equity we have some of the most highly trained underwriters in the business, who understand that you are not just a score on a credit report. There are several factors that go into determining an interest rate and US Equity Mortgage makes a concerted effort to weigh each factor equally.

Integrity and Credit Score
US Equity wants to know whether or not you will be a good payer. Will you keep you word? How great of an effort will you make to repay the loan? One of the first things a loan officer does is order a credit report. The credit score on this report along with your payment history on your active and closed accounts is a major factor in determining your interest rate. US Equity always understands that financial difficulties related to one-time situations such as a divorce, job loss, or serious medical problems can affect even the best of us. If there have been blemishes such al those listed above or bankruptcy or foreclosure, make sure to provide one of our loan officer’s with a detailed explanation of the problems. This explanation can go a long way in demonstrating integrity and helping offset a less than stellar credit history.

Income and Job Stability
US Equity doesn’t want you to overextend yourself. We know form past experience that the number one cause of foreclosures is borrowers spreading themselves too thin. The main way that US Equity uses to determine a borrowers ability to repay the loan is by a formula called Debt-to-income ratio (DTI). For example, suppose you earn $4000 per month. If your current monthly debt is $1200 per month, your DTI is 30% ($1200 divided by $3000). If your DTI is above 37% your interest rate may be affected. Likewise if you do not have verifiable income it may cause your DTI to be high as well. Regardless, US Equity has programs that go as high as 55% DTI and also programs specifically for the self-employed and those that have cash income.

Property Appraisal
Whether a purchase or a refinance, US Equity must determine what the house you want to mortgage is currently worth. We do this by getting an appraisal, a written report prepared by an appraiser. That contains an estimate or opinion of fair market value. The Loan-to-Value ratio, or LTV, is a quick way for US Equity to determine how risky a mortgage might be. LTV is the loan amount divide by the property’s appraised value. For instance, is you’re borrowing $160,000 to buy a home and the homes appraised value is $200,000, the LTV is 80%. The lower the LTV the less risky the loan: conversely the higher the LTV, the greater our risk if a problem arises with the loan. That’s why in some cases a higher interest rate, higher loan fees and even PMI may be required if the LTV exceeds 80%. US Equity has several programs that allow us to be comfortable with loan amounts up to 125% LTV.

Cash Reserves
As a condition of making a loan, often times it is necessary to have enough cash or other liquid assets, such as bonds, to provide a tow or three month reserve to cover all your living expenses in the event of a n emergency. In some cases we can reduce our cash reserve requirements if you have a low DTI or LTV.

Interest rates are not as simple as just looking at one piece of the puzzle. US Equity make an effort to look at all facets of a borrower’s application to ensure that each borrower gets the lowest rate possible