Posts Tagged ‘qualifying’
What Lenders Look for When You Want A Loan
In order to avoid the perception of bias (based on discrimination) most banks and lenders these days use creditworthiness to determine if you qualify for a home loan. Of course, that doesn't mean having a good credit score automatically gets you a loan. It is, in fact, a big piece of the puzzle, but to get a totally clear approval you will need several other things in order as well. Here they are: TOTAL DEBT CANNOT BE TOO EXCESSIVE When a loan officer runs your information to get you pre-approved, one of the first things they get from your credit report are your total debts and anything else you are obligated to pay each month. They then factor this with your proposed monthly PITI payment (Principle, Interest, Taxes, Insurance) to get what is known as the "Debt-To-Income" ratio. This ratio represents how much you will be paying each month compared to how much money you actually bring in. Your total payments (including credit cards, student loans, car payments etc.) should not exceed more than thirty-six percent of your income. APPRAISAL When you get a loan, the note itself is secured by the actual property you buy. This means that if you don't ...
How to Get the Lowest Possible Interest Rate in DFW
One of the most important aspects of obtaining a home loan or mortgage is getting the lowest possible interest rate. Society has driven it into our heads that this in itself is paramount to anything else, including the actual house you are buying. In fact, whenever I’m doing a loan for someone, literally the first thing they always ask me is “what are rates looking like today?” People want to know how much they’re going to pay, and how this will affect their livelihood. So if you’re in the market for a new home and you are concerned about this, there are a few things you should know before you get too preoccupied with your interest rate. IMPORTANT INFO ABOUT RATES First of all, mortgage rates change, and they change VERY OFTEN. How often? Well, last month lenders were re-pricing (changing rates) at an average of every 4 hours. That’s right. EVERY 4 HOURS. Remember too that this is just an average, and many times rates have been known to change every 30 minutes or so. So when your loan officer seems reluctant to speak with you about interest rates, it isn’t because he is ...
Down Payment Assistance Program for Fort Worth Residents
The Neighborhood Stabilization Down Payment Assistance Program is offering up to offers $25,000 in assistance to future Fort Worth residents. That’s right. $25,000. And out of that amount, $5,000 can be used on your closing costs and $5,000 can be used on doing minor repairs. Any remaining amount can be used by you for your down payment. All of this is funded by the US Department of Housing and Urban Development (or HUD) in an effort to provide financial assistance to qualified homebuyers to purchase lender-foreclosed homes with the City of Fort Worth in specific target areas. Which areas? Well I’m glad you asked. Here they are: 76131 76133 76123 76112 76179 76248 71637 Obviously the HUD isn’t going to just give this money away to anyone who asks, so there are some qualifying factors you must take into consideration when applying. First of all, income is the main thing the HUD will want to know when you fill out your application. The limits are set in advance by HUD, so conversely, your income cannot exceed their parameters in order to qualify. For example, the maximum allowable household income for a family of 4 is $72,900. For 5 people it ...
How to Get Pre-Approved for a Mortgage Loan
Found a house you love but need a pre-approval letter to show your realtor? We can help you out with the process! To get pre-approved, you will need to CONTACT one of our loan officers, who can analyze your situation and tell you how much you can afford to spend on a house. How is this accomplished? Well, long story short, lenders are going to look at a few specific things before they give you the green light to go shopping for your first house. This includes running your credit and seeing how much income you earn, and then comparing it to how much you want to spend each month. They will also take into consideration things such as how much money you have on hand and how much you pay each month towards bills like credit cards. If you are ready to apply or are interested in getting pre-approved, just select the option below that is most convenient for you. Complete our Quick Loan Application Form. This process usually takes less than five minutes. A loan officer will contact you once we receive your application. Give us ...
Beware! FHA Guidelines To Change in April!
The FHA, who lately has originated almost a third of all home loans, is overhauling its system come April 5th of this year. Why would this be done when its loan program is so successful, so popular? Mostly this is being done in an effort to bolster it's balance sheet and falling capital reserves. In other words, the FHA is attempting to position itself better to "manage its risk while continuing to support the nation’s housing market". Unfortunately this also means that it will become increasingly more difficult to secure an FHA loan. Ugh. So without further ado, here are the changes: Maximum seller contributions are reduced from 6 percent to 3 percent An increase in Upfront Mortgage Insurance Premiums from 1.75 percent to 2.25 percent A Congressional request to increase monthly mortgage insurance premiums even higher The good news is that the biggest expected change (the proposed increase for the FHA minimum downpayment) didn't make the final cut. Luckily this means you can still get into a home with 3.5% down. Whew. Also, the FHA'S NEW GUIDELINES institute a minimum FICO score of 580 to make this 3.5% downpayment, while requiring 10 percent down for any applicant whose ...
USDA Rural Development Loans Offer 100% Financing For Surrounding Areas of DFW
Over the past several years, the Government and the Mortgage Industry as a whole has continuously tightened the rules and regulations when it comes to buying a home. It has gotten to the point where even people with stellar credit and a solid borrowing history still need a hefty down payment before they can purchase a new house. Fortunately though, there is a new program available from the United States Department of Agriculture that offers 100% financing for people that live (or are looking to live) in rural areas. Why would they do this? Is it too good to be true? Well, long story short, the government offers the option of “zero money down” so that people who live in rural areas (who may have always been renters) can finally have access to affordable mortgages. Consequently, this type of loan is often the best scenario for people who live in the country and want to find a place they can call home. Another amazing feature of this loan is that 100% of repairs that ...
Qualifying For A Mortgage
Unless you find yourself in the rare situation of having a few hundred thousand dollars laying around (or stuffed under your mattress), you're going to have to take out a mortgage if you want to purchase a house. There just isn't a way around it. So here's some tips for getting the process started, or as we call it in the mortgage biz, "getting pre-qualified." The first thing you are going to need to do is make sure all of your finances are in order. If managed early (and correctly), this can help so there won't be any inconvenient roadblocks at the last minute that might prevent you from buying your dream home. Long story short, lenders are going to look at a few specific things before they give you the green light to go shopping for your first mansion. Here they are: 1. Your credit history. Pretty much the first thing the banks will do when they see your name is pull a copy of your credit report and check it very thoroughly. Banks do this because ...
