Guide to Refinance, Mortgage,
& Home Equity Loans in
Marlborough, Massachusetts (MA)

Marlborough is one of those quaint old, old New England towns that predate the United States of America by more than 100 years. It has a rich and amazing history. Settled by Europeans in 1657, it was nearly destroyed by King Phillip in the French and Indian War, but was then rebuilt to become a favorite stop along the Boston Post Road. You can almost hear the sound of horses galloping as Paul Revere, William Dawes and Israel Bissel spread the word that “The British are coming.”

Things have certainly changed in Marlborough since then. It is now part of the Boston metropolitan area and a thriving middle-class neighborhood. Marlborough has a diverse, well-educated population, good schools and almost no crime. Only about half of the adult residents are married, so Marlborough is an attractive city for singles too. People make good money, and the cost of living and home ownership is not as high as some of the other Boston metro cities.

When buying, refinancing or taking out a home equity loan, you are depending on getting loan approval from a lender. That lender will ask you a lot of intimate questions about your finances, and he or she will ask you for a lot of documentation and paperwork. It is all to determine how creditworthy you are. All of that information will determine whether or not you get approved for a mortgage, and what kind of terms you will get. Here’s what the lender is looking for:

• Your FICO score. FICO is a score calculated from your credit report. FICO scores range from 350 to 850, and the higher scores are better.
• A FICO of 720 or above indicates that you are a prime borrower and you handle credit and your finances well.
• If your FICO is less than 620 or so, you are a sub-prime borrower and some lenders may turn you down. You may still be able to get a mortgage from a sub-prime lender, but your interest rate will be higher and you will probably have to carry private mortgage insurance.
• Your overall financial situation. You will have to document your income and list out all of your debts. The lender will calculate your debt-to-income ratio from those figures. Although your total debt is an important factor, lenders are more interested in your monthly finances. Ideally, you should not spend more than a third of your income on debt, including housing costs. Sometimes you will see debt-to-income ratios expressed as two numbers, most commonly 28/36. The first number is the percentage of your income spent on housing and the second number is the percentage spent on all debt, including housing.
• Your assets. This includes both liquid and non-liquid assets. Liquid assets are those things that you can convert to cash quickly in an emergency, like a savings account or a CD. Lenders are much happier when they see that you have funds available for emergencies. If you live from paycheck to paycheck and zero out your checkbook every week, the lender will be concerned about your ability to make mortgage payments.

It is good to know what lenders are looking for, because it gives you an idea of what to expect. You know that if you have been handling your finances and credit responsibly, you will probably be approved for a purchase mortgage, home equity loan, or refinance.

It all starts with the lender, though. Whether you need a home equity loan, refinance or mortgage, you need a lender. You can find one here by completing the form at the bottom of this page.