I apologize that this posting is late. I thought it had been uploaded!

There are difference aspects of the financial picture that are common in what makes a good mortgage loan. All of these elements have a degree of risk to the lender. Mortgage companies judge these risks and assign a credit grade to them. The higher the risk to the lender results in a higher rate to the borrower.

We will review the lenders’ point of view on borrower assets:

What assets does the borrower have? Where did they come from?

Just about every single lender will want to see that they borrower has “reserves”. Reserves are additional funds, which can be verified prior to closing.