00:02
So here are five key considerations of mr and mrs merrimack's plan purchase.
00:25
First is credit worthiness.
00:33
So the lender will assess the credit worthiness of mr and mrs merrimack to ensure they have a good track record of prepaying debts and are likely to be able to make their mortgage payment.
00:42
This will involve reviewing their credit score, credit history and debt to income rate.
00:47
Then is ltv that is loan to value.
00:56
So the lender will determine the ltv ratio which is the percentage of the property's value that the lender is willing to finance.
01:07
In this case the purchase price is $12 ,50 ,000.
01:10
The lender may require minimum down payment of 20 % which would be $19 ,000.
01:14
This would mean that the ltv ratio would be 80%.
01:18
Next is income and employment stability.
01:26
Income and employment stability...