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  • Digg it UP - How Does A Lender Decide How Much I Can Borrow?

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  • A full documentation loan is one where you prove all of the contents of your mortg
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    Basics

    Lenders look at mortgage applicants with a standard set of measurements, which can include:

    • your credit score
    • your income
    • your tax records
    • your bank statements
    • your rental history
    • your employment
    • your downpayment
    A lender will look at all of these factors to get a general idea about you.

    Documentation Types

    Keep in mind that mortgage lenders often have two types of ways they offer loans:

    • full documentation
    • stated documentation
    A full documentation loan is one where you prove all of the contents of your mortg
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  • your income
  • your tax records
  • your bank statements
  • your rental history
  • your employment
  • your downpayment
  • A lender will look at all of these factors to get a general idea about you.

    Documentation Types

    Keep in mind that mortgage lenders often have two types of ways they offer loans:

    • full documentation
    • stated documentation
    A full documentation loan is one where you prove all of the contents of your mortg
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    oyment
  • your downpayment
  • A lender will look at all of these factors to get a general idea about you.

    Documentation Types

    Keep in mind that mortgage lenders often have two types of ways they offer loans:

    • full documentation
    • stated documentation
    A full documentation loan is one where you prove all of the contents of your mortg
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    entation Types

    Keep in mind that mortgage lenders often have two types of ways they offer loans:

    • full documentation
    • stated documentation
    A full documentation loan is one where you prove all of the contents of your mortg
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    ntation
  • stated documentation
  • A full documentation loan is one where you prove all of the contents of your mortgage application, including your income and assets. A stated documentation loan is one in which you just hand in a mortgage application without supplying supporting documentation. There are also hybrid programs between these, such as when a borrower states their income but proves their assets.

    How Much You Can Borrow

    A lender typically wants your total monthly debt load to be less than 40% of your pretax income.

    Your monthly debt load includes your monthly:

    • credit card payment

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