EMPIRE WEST MORTGAGE LENDING

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Understanding how much you can borrow is the first step in securing a mortgage. If you are purchasing a home, it’s important to know your buying power before you begin your search. By answering a few simple questions, we can calculate your purchasing capacity using standard lending guidelines.

Click here to Pre-Qualify.

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You may also choose to get pre-approved, which requires verification of your income, credit, assets, and liabilities. Getting pre-approved before you start shopping for a home offers key advantages:

• You focus only on properties within your true price range.

• You gain a stronger negotiating position—sellers know your financing is already approved.

• You can close your loan faster and with fewer delays.

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Additional Information

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LTV and Debt-to-Income Ratios

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The Loan-to-Value (LTV) ratio represents the percentage a lender is willing to finance based on the property’s value. Strong borrowers may qualify for higher LTVs—sometimes up to 100%.

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Lenders also evaluate your Debt-to-Income (DTI) ratio, which measures your monthly debt payments relative to your income. As a general guideline, your total mortgage payment should not exceed one-third of your gross monthly income. Borrowers with higher DTI ratios may need a larger down payment to meet qualification standards.

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FICO™ Credit Score

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Most lenders rely on FICO™ credit scores when evaluating creditworthiness. These scores are calculated using models developed by Fair Isaac Corporation and reflect your credit risk compared to the general population. Factors affecting your score include:

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Payment history

Total outstanding debt

Length of credit history

New credit inquiries

Types of credit accounts

 

Every time a lender pulls your credit report, it can slightly reduce your score. For this reason, only authorize a credit check once you’ve decided to move forward with a specific lender or broker.

 

Self-Employed Borrowers

Self-employed borrowers may face additional documentation requirements. While traditional employees provide pay stubs and employer verification, self-employed individuals must rely on two years of federal tax returns to verify income. Lenders review these documents to determine consistent and reliable earnings.

 

Source of Down Payment

Lenders expect borrowers to have sufficient funds for the down payment and closing costs. These funds typically come from personal savings; however, borrowers may also receive gift funds from an approved donor. A signed gift letter must confirm that the funds are a true gift and do not require repayment.​