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Information of different types of Deeds

A deed is a legal document that transfers the ownership of assets or property from one person to another. People cannot transfer a real estate without writing. So Deed is very essential to use for transferring a property. There are different kinds of deeds like Quitclaim deed, Warranty deed, Grant Deed etc. A brief detail of these deeds follows below…

Quitclaim Deed:

A quitclaim deed is the most used form of deeds. By signing a quitclaim deed a owner of a real estate property can quit his or her all claims on that property. This form of deed is mostly used among family and friends and mostly in divorce cases. In most cases these is monetary exchanges occurs.  This deed needs to be notarized and recorded in the County Recorder office to make the quitclaim deed valid. A quitclaim deed does not ensure that the title of the property of lien free. So while buying or selling a property, a quitclaim should not be used.

Grant Deed:

A Grant deed is mostly used while selling or buying a property. All the owners or the grantors of the property need to sing the Grant deed. By signing a grant deed, the owner ensures that the title is free from all kind of liens and taxes and also that the property has not been sold to any other third party. This deed also needs to be notarized by a notary public and then it is needed to be recorded in the County Recorder office so that the deed is considered as valid.

Warranty deed:

The Warranty deed is the safest form of deeds while selling or buying a real estate property because by singing this deed the seller ensures the buyer that he has the right to sell the property and the title of the property is free from all kind of debts and liens. The seller will compensate the buyer if there is any unsettle claims or debts again the property.

Hope this helps but always consult with an attorney while selling or buying a property and he will guide you have make the process easy for you.

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What is Debt to Income Ratio and its Importance

When you opt for a mortgage or any other kind of secured loans your lender will check your debt to income ratio with your credit score before approving the loan. Debt to income ratio shows that how strong a borrower is financially. Debt to income ratio is your total expense towards all of your debts (includes monthly mortgage payments, credit card bills, student loans, car loans etc) compared to your gross monthly income. But you should not include your expenses to your foods, electricity bills, gas, restaurant bills, entertainment etc to it.

Debt to income ratio is not as important as the credit score for getting a loan but it plays a strong role for getting approved for a loan. It gives true light on your current financial condition and that helps the lender to understand how strong you are financially. So if you have a better DTI then getting approved for a loan will be much easier.

The lender want to see the DTI because the borrower may earn a lot of money but if his debt is too high and his debts match to his income then this is a big problem for him. The lower the ratio is the better for the borrower.  That means if you have lower debts and your income is high then you can get the loan with better rates and terms. Generally it is considered that your DTI should be below 36 percent. But if it is more than 36 percent then also the lender may approve you for the loan but will charge you more.

Remember that debt to income ratio is not the only thing that the lender will consider; there are other things like your credit score, length of time of you current job etc will also play an important role but having a better DTI will certainly give you advantage for getting approve for the loan.