Income (the quality of your income, how stable is),
Credit history ( You need to have a good credit),
Employment history ( need minimum two years in the same job)
Available Money for the downpayment.
Shop around for a mortgage broker, they have acces to many banks, private lenders and many different programs.
Best of Luck,
Century 21 Tenace
Best of Luck,
Century 21 Tenace
2. Find the down payment: savings account pay a mere pittance these days, so a buyer might have his down payment in a 401(k) or somewhere else. Buyers often don't realize that a 3-1/2% down payment does not include closing costs, prepaid expenses, moving costs, or new/replacement furnishings (or even security deposits for utilities). Always allow a couple of thousand more than the minimum down payment for these other items, and maybe more if some other things come to mind.
3. Check the credit score: surprises happen. A buyer who says she has clean credit can be shocked to find a few derogatory items on the report that have dragged the score down. Medical collections, despite the lip service given to reforming healthcare, often appears on the credit report because insurance never got around to paying the third-party radiologist or lab or something else. Before it's too late, find out what's on the credit report so the buyer can pay them off or get them corrected in time to apply. This often takes more than a month ahead of loan application.
4. Stop applying for and stop closing accounts. It's important. A lot of buyer/borrowers think that paying off and closing accounts is smart - it absolutely is not smart. Credit scores derive their benefit from accounts that have been open a long time and paid on time for at least 24 months.
When a borrower opens a brand new credit account at the furniture store, his score drops because the account has no history of good, on-time payments. Worse, his ability to pay can be lowered if he has a balance on the account.
When a borrower closes an account he opened 9 years ago after he pays the remaining $54 balance, just shot himself in the foot, because that wonderful proof of on-time payments now no longer counts into his score.
If you don't know what to do - whether to open an account, pay one off, close one, dispute a derogatory - then do nothing until you talk to a loan officer.
One things is for sure: pay all your bills on time, even if you don't pay off an account, pay it on time. But don't open or close any accounts until you talk to your loan officer.
5. If you need to move money around from stocks or real estate or any other account to your checking/savings, do so more than 60 days prior to closing. Otherwise, you will be writing letters of explanation to prove the provenance of funds and possibly why you moved something.
6. Now that the principal buyer-borrower understands these things, he needs to explain them to his significant other and get the spouse to obey also. It's not a joke - spouse credit is going to be checked, just like the working spouse. It's a rule.
#1 Goal is credit scores above 625 & 3.5% or more as downpayment, 2 years of solid employment
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
Multimillion Dollar Sales Producer
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