Hi {first_name},

Let’s continue with the four Cs or:

• Credit
• Income and DTI (Debt to Income Ratio)
• Assets and Down Payment
• Your New Home

I promised to cover DTI, so let’s dive into what that is...

The two ends were: Front End and Back End (or Top and Bottom) ratios.

Debt To Income ratio or DTI is about how much you earn, and how much you are spending.

Simply put… Bills / Income = DTI Ratio

Front End Ratio is calculated like this:

New Mortgage (PITI or Principal, Insurance, Taxes and Insurance) / Income

Back End Ratio is calculated like this:

[Bills + New Mortgage (PITI or Principal, Insurance, Taxes and Insurance)] / Income

But you must check the end result yourself…

Why?

A quick tip...

Usually your cell phone bills, health insurance, auto insurance, and electric bills do not report on your credit. So while you may get approved… you might actually feel uncomfortable repaying the loan.

Anywho.

Let’s talk about Assets and Down Payment.

Assets are the liquid and non-liquid property that you own. (Less any money owed against each listed asset).

Example: Checking and savings accounts.

Or 401k, 403b, IRA, Roth IRA.

Or certificates of deposit (CD).

Same goes for homes and cars (less their remaining mortgage and loan repayments).

Also life insurance policies are considered assets.

All assets must be verified.

You need to prove that they are either:

• yours
• a gift

One more tip…

If you can’t verify that your assets are YOURS or are a GIFT, then they will be added to your DEBT.

Yuck! I know

This also might mean that you will not qualify for a loan at all… So be aware.

Best thing you can do is talk to me to get it looked at.

Just reply to this email, and we can set up a time to chat.

Let’s look at the Down Payment part next.

I have quite a few trade secrets to reveal:

• Why a bigger down payment is NOT always better…
• How the seller can get and keep your money without closing the deal and what to do about it!
• And more…

This email is getting a bit long, so I'll share these secrets with you in the next email.

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