1. What does my credit score need to be for me to buy a house? We preferred if you have at least 720 to obtain optimum rates. However, a minimum score of at least 620 is required by most banks. We offer FHA insured loans with imperfect credit score with as low as 550 with 10% down. Please consult with me if you have lower than 620 for special options available for you.
2. How much do I need for a down payment? We preferred if you have 20% to avoid paying for mortgage insurance. However, you can put down as little as 1% to 3.5% of the sales price for either conventional or FHA financing. We also have 100% financing options with VA and USDA home financing that you may qualify for.
3. What are closing costs, and how much are they? Closing cost are the cost incurred to close a loan and consist of bank charges, third party fees such as escrow, title and prepaid items such as property insurance and property taxes. In general, on a $200,000 house - the rule of thumb is between 2-3% of the sales price depending on the variables.
4. I want my monthly mortgage payment to be $X per month... how much house can I afford? Excellent question. Ideally, your Debt-To-Income (DTI) ratio should be at 45%. Since each property is taxed at a different rate - please consult with me for details. Live within your means and do not over leveraged yourself.
5. Should I pay off my car and installment loans so that I can qualify for more? Please consult with me for free consultation before paying any debts off or doing anything that will affect your FICO score.
6. I don't have enough cash for closing costs AND a down payment... Can I still buy a house? Closing Cost can be paid by the seller, in addition taking a premium rate the lender can credit back some closing cost help as well. USDA and VA loans do not require any down payment.
7. What type of loan product is best for me? It depends on several factors, such as your down payment, credit score, and DTI ratio. If these factors are not a concern - then a 15-year loan will save money due to lower rates and lower maturity/duration than 30-year loans. 8. Rent Vs. Buy - Analytical tools to assist you in evaluating both options. 9. Be patient during underwriting. Don't charge up your credit cards and don't apply for new credit while the mortgage is going through the underwriting process. Lender will soft-pull your credit shortly before closing to survey your credit again. If there is a substantial change, the lender might have to delay your mortgage closing. Please consult with me to
evaluate your options. It's free and you don't even have to sacrifice
your hectic schedules. You can email, text me at 408-605-5927 or swing by my office in Green Lake at your convenience.