From the Community Mortgage Blog


What are the basic building blocks of a preapproval?

  • Credit Score

  • Job Status/History

  • Debt to Income Ratio

  • Current Assets


Debt to Income is one of those components that is ever-changing depending on debts paid off, new credit lines, property tax rates, and....Homeowners' Insurance...YES, you read that correctly.

So why is Homeowner's Insurance counted? It is one of those payments homeowners are required to pay at a certain frequency, just like property taxes and monthly mortgage payments.

So you could see why deciding on the appropriate coverage and payment early in the mortgage process is so important.

John Baertels & Jason Savage of the Commuity Mortgage Atoka Team have a great explanation in this quick video below.