Ratios Lenders Use When Reviewing Your Loan Application
When you apply for a mortgage loan, you will have to submit a lot of documents related to your finances, and the purpose of this is so the lender can see if you are in a financial position in which you can repay a loan if the lender gives you one. When you submit your information, the lender will also check your credit report to verify the debts you owe. Once the lender has this information, they will review it to determine if you are approved or not, and one of the steps they take during the reviewing process involves calculating the following three ratios.