What factors are considered when a lender evaluates making a loan?
credit history,
delinquent accounts,
credit card accounts,
public records, foreclosures and collection accounts, equity and loan-to-value ratios, liquid reserves debt-to-income ratio, loan purpose, loan type,  term of loan, property type, number of borrowers, self-employed borrowers

Where can I get a copy of my Credit Report?
Your credit report shows your debts and payment history with creditors who have loaned you money, such as credit card companies, banks, and department stores. It indicates whether you pay bills on time, both currently and in the past. It also reveals how much debt you currently have. It documents any history of tax liens, bankruptcies, and other public records, even those that happened several years ago.  It shows who you have authorized to obtain a copy of your credit report and indicates how often you have applied for credit in the past two years.  Contact one or more of the following national private credit bureaus in order to obtain one or more of your credit reports:

Equifax Credit Information Services
P.O. Box 740256
Atlanta, GA 30374-0256
(800) 685-1111 www.equifax.com

Experian National Consumer Assistance Center
P.O. Box 2104
Allen, TX 75013-2104
(888) 397-3742 www.experian.com

Trans Union National Disclosure Center
P.O. Box 1000
Chester, PA 19022
(800) 888-4213 www.tuc.com

What is the difference between origination points and discount points?
Origination points are what a lender charges to originate the loan. It is basically the lender's profit for working on the loan and putting the required documentation together so that it meets all of the lender's underwriting guidelines.

Discount points are what you pay when you want to get an interest rate that is below the current market rate. The zero point interest rate, also known as par pricing, is the current market rate. For example, if the zero point rate were 8.5 percent and you wanted an 8 percent loan, you might have to pay 2 points or 2 percent of the loan amount to get the lower rate.

Explain the qualifying ratios.
In order to get a mortgage loan, you have to meet certain qualifying ratios. With a conventional loan the ratios are 28/36. This means that your mortgage payment should represent no more than 28 percent of your gross monthly income. The 36 percent backside ratio means that your monthly mortgage payment plus your monthly debt payments (credit cards and installment debt) can represent no more than 36 percent of your gross monthly income.

What are PMI costs?
Private mortgage insurance (PMI) provides protection for lenders when granting home mortgage loans of more than 80 percent of the property's market value. Premiums are normally paid by the homebuyer when the purchase transaction is closed and continue as part of the homeowner's monthly payments. When equity grows to at least 20 percent of the property's value (due to an increase in the market value of the home and / or the gradual reduction of the mortgage balance), you should ask your lender to cancel your PMI premium payments.