This article is meant especially for first-time home buyers chasing the best mortgage loan. It will explain how lenders qualify people for a mortgage loan and show that for many the amount they qualify for is too high for them.
For many people, the best mortgage loan is the highest amount at the lowest interest rate. Which is often fine, but not always. Here’s a bit of background on how lenders qualify borrowers.
After the 2008 mortgage meltdown, Congress passed some rules to make sure borrowers are not taken advantage of.
One of the is the Ability-to-Repay rule (ATR).… More