Guardian Home Mortgage Corporation

 FAQ

What is a Mortgage?

A mortgage loan is a loan that a bank or lender gives you to help finance the purchase of a house. It is most advantageous to borrow approximately 80% of the value of the house or less if at all possible. The house you buy acts as collateral in exchange for the money you are borrowing to finance the house (mortgage).

What does a credit report and  credit score mean?

Your credit report is separate from your credit score, though the score is developed from the report. In addition to viewing credit reports from the three major reporting bureaus, you also should obtain your FICO score. Your score is like a report card. Fair Isaac & Co. (the FICO score keeper) assigns you a number based on the information in your credit report.

Debt to Income Ratios - What are they?

When you apply for a mortgage, your lender will analyze your debt ratios, which are also known as your debt-to-income ratios, or DTI. Lenders calculate DTIs to ensure you have enough income to comfortably pay for a new mortgage while still being able to pay your other monthly debts.

Loan to value ratio explained - Why does it matter?

A loan-to-value ratio (LTV) is a comparison between the value of your loan and the value of your home. The LTV may affect your interest rate and/or PMI requirements.

Mortgage Insurance - What is PMI and how does it work?

Mortgage lenders make many borrowers purchase mortgage insurance to protect the lender if the borrower is unable to pay the mortgage. In other words, mortgage insurance guarantees your lender will get paid if you default.

What is a Financing contingency on a home purchase?

A financing contingency is a clause in a home purchase and sale agreement that expresses that your offer is contingent on being able to secure financing for the house. Typically a buyer uses this clause to establish a set period of time to apply for a mortgage and/or close on the loan.

What items are needed at loan application?

1. A completed loan application

2. Paystubs covering the last 30 days (for each applicant)

3. W2 forms for the last two years (for each applicant)

4. Bank statements for the last 2 months for all accounts

5. A copy of your drivers license (for each applicant)

6. Sign and return the Borrowers Authorization 

Home Mortgage Definitions