their own financial circumstances when calculating the size of the down payment and ensure they have sufficient cash reserves for emergencies or other needs. The down payment should take into account cash on hand, cash in reserve after the closing, and the borrower's ability to comfortably carry the new monthly costs.
Collections
When a person does not pay their debt, most lenders will push the debt collection responsibility to a third-party company. When a collections agency is hired to collect a debt from a person, that information appears on their credit report and in the public record. However, a borrower in collections isn’t automatically denied a loan. The underwriter will have to determine if the cause of this blemish is not typical of the rest of the borrower's credit history.
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