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About Denise Hadnott
As a strong woman, you want to make sure that you give yourself as many opportunities as possible in life. Whether you’re a single mother learning how to budget or if you’re interested in learning about financial stability and how you can use it to your advantage, I am here to help. I am Denise Hadnott, a divorced mother and successful entrepreneur. I reached a point in my life where I had to choose between financial freedom and being burdened by living paycheck to paycheck, which is why I created my financial platforms including Dollars Dames Dineros and Wealth Matters.
Together we will go on a journey to teach you how you can make your own money through entrepreneurship, how to manage your own money, and a variety of different avenues available to help build wealth.
As an independent woman you’ll finally have the opportunity to learn about financial tips and investing in real estate, just to name a few things you’ll find on the site. We all reach a point in our lives where it’s time to buckle down and start to recreate and plan our financial future. With my help, you can feel more comfortable with the career that you’re in or find a brand new pathway that will open more doors leading to your success.
Stay Strong Beautiful and Enjoy the Ride!
Understanding how to qualify for a mortgage
starts with understanding the requirements that every mortgage provider
uses to approve a loan:
CASH
CREDIT
DEBT
COLLATERAL
CASH
Also referred to as “Capital,” isn't just about how much cash you have: it’s also about where it came from, and where it’s going.
Down payment:
The bigger the down payment you make, the more likely mortgage providers are to approve you at a great rate. A down payment equal or greater than 20% of the purchase price is required for most conforming loans, but there are some programs (like FHA loans) that will allow for a smaller down payment. In addition to confirming the amount of your down payment, mortgage providers will review your bank statements to verify you have these funds available.
Closing costs: As with your down payment, your bank statements will be reviewed to ensure you can cover these expenses which are typically equal to 2-5% of the home’s purchase price.
Reserves: Once the down payment and closing costs have been paid, how much money do you have left? Mortgage providers want to see a demonstrated ability to save and verification that you have a cushion in place should an emergency occur. This is not required for FHA loans, but it is still a good idea to have some savings in place.
Undisclosed gifts or loans: Your bank statements will also be reviewed for any large deposits of more than a few hundred dollars. If you’re accepting a cash gift for your down payment, make sure this is well explained and documented; any unusual deposits will be a red flag.
CREDIT​
focuses on a prospective borrower’s history of debt repayment and credit score.
FICO Score: Most providers will request your FICO score from the three credit reporting agencies, then toss out the high and the low score and use the middle one for their assessment. Your score is based on a number of factors including your payment history, how much you currently owe, how long you’ve had credit, when you last applied for credit, and what types of credit you have.
Benchmarks: 580 is the minimum for alow-downpayment FHA loan, while 620 is the minimum for most conventional loan programs. That being said, improving your credit score is the best way to improve your chances of qualifying for a loan and getting a better rate.
DEBT
is about your income and ability to make monthly payments on your mortgage and repay your loan over time.
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Housing-to-income ratio: Based on the loan amount you requested, this number is what percentage of your gross monthly income (determined from pay stubs, W2s, tax returns and other documentation) will be spent on your monthly housing expense. Your total housing expense includes principal and interest, property taxes, homeowners insurance, along with any mortgage insurance, homeowner’s association dues, and special assessments, if applicable. To get the best terms, you want this number to fall below 30%.
Total debt-to-income ratio: Also called the “back-end ratio,” this is a percentage of your gross monthly income spent on housing (see above) plus your other monthly expenses. These additional expenses are defined as revolving debts (like credit cards) and installment debts (like student loans, car financing, etc.). Mortgage providers use a copy of your credit report to determine the minimum payments on these debts and include any child support and alimony in this equation. In the majority of cases, you cannot qualify for a mortgage with a debt-to-income ratio of more than 43%.
COLLATERAL
Regarding the value of the property being purchased, this confirms that your mortgage provider has a way to recover their losses should you default.
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Home appraisal: One of the steps in finalizing your home loan is an assessment of your property’s value by an independent appraiser. The appraisal will consider many factors including recent sales of comparable homes, the home’s location, its condition, and even potential rental income. If an appraisal comes in below the home’s purchase price, the borrower will only be approved for a loan at the lower amount.
Health and safety: In determining the condition of the home, mortgage providers will want to know whether the home is safe and structurally sound. They do not, however, require a termite or home inspection, but these are strongly recommended to protect yourself and your own investment.
" Without Denise Hadnott, I would have gone bankrupt by now. Keep up the excellent work."
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