To get a mortgage, you need credit, money and a loan officer.
Credit means 3 things: a credit score of 580 for a low down payment mortgage; current credit items – such as credit cards or loans; and, not terrible credit the last 1-2 years; no bankruptcy in 2 years; no multiple late payments on active credit items; student loans not in default; and not too many debts.
Money means an income and money in the bank;
and, a Loan Officer: a good one. Like this guy Chris Luis everybody is talking about.
A Pre-Approval Letter is the first step in house hunting as most realtors will not show you homes without one.
For a Pre-Approval Letter, you need to have your credit pulled to check what mortgage programs you qualify and have your income verified to determine how much of a loan you can get. Income verified is just recent paystubs and 2 years of w-2’s or tax returns.
Nationwide, 60% of all some pre-approvals get approved by a bank and people get the mortgage. My pre-approvals have a 96% guaranteed that they will be finally approved by a bank.
Here is a list of some loan programs that may fit your profile:
- Conventional - 620 Score and 5% down; or 3% for 1st Time Homebuyers;
- FHA -- 580 for 3.5% down; if under 579 then 10% down;
- Rehabs -- (Handyman Specials) -- same as FHA;
- USDA – 580 score and 0% down;
- Veterans /VA -- 560 score and 0% down;
- HUD Homes for $100 Down - 580 score.
- No Tax Returns? Use Bank Statements to show income.
- 25% down? 640 credit score – No Income – No Job – No Nothing.
Mobile homes? Condos? Yes, and yes!
I look forward to one day saying to you: “Congratulations! The lender is ready to close on your mortgage.”