Friday, April 8, 2011

Home Buying Strategy - Get Prequalified for Mortgage Loan

Home buying strategy 

If you want to buy a home (especially if you are a first time buyer), the best way to find out whether you will qualify for such a purchase is to contact an experienced mortgage broker. qualify for a mortgage

The mortgage loan professional will answer your questions and assess your prospects for qualifying to buy. 

You must learn and know in advance whether you qualify for a home loan and how much house you can buy. 

If you don't qualify to buy now, you should learn what steps you need to take to get qualified. 

FHA logo 

General rules of thumb on basic minimums required for you to buy a home in today's market (qualifications for an FHA loan):

  • 3.5 percent down payment, based on home purchase price (e.g., $7,000 on a $200,000 home).  Alternative is that you would receive a gift in that amount.
  • 3 percent to 6 percent of purchase price (in addition to down payment) for closing costs.  Alternative is credit from seller in that same amount.
  • 640 FICO credit score (middle score of those generated by the three credit bureaus)
  • Documented income, asset and job history, including current paycheck stubs, two months' bank statements and two years of W-2 forms or tax returns
  • minimum of two years have passed since discharge of any prior bankruptcy
  • minimum of three years have passed since any prior foreclosure
  • up to three years have passed since any prior short sale (depending on circumstances)

Be careful. Buy what you can afford Meeting these minimums doesn't necessarily mean that buying a home would be the best decision for you. 

Hire an experienced REALTOR® and always consult with a mortgage broker professional to  help determine whether you can afford the purchase, down payment, closing costs, and monetary obligations. 

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Source:  Tara-Nicholle Nelson @ www.rethinkrealestate.com - This is for information only and not the providing of legal or tax services.  If you are a prospective homebuyer, you should contact an experienced mortgage broker to help you learn about determine qualifications to buy.

Harrison K. Long - solutions for real estate and business - REALTOR® and broker associate, GRI - Coldwell Banker Residential Brokerage - 949-854-7747 (phone) - ExploreProperties@gmail.com (email) - CA DRE 01410855 - SFR short sale and foreclosure resource certified by the National Association of REALTORs® - also now serving as director at California Association of REALTORs®.

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Helping people with their best decisions about real estate, listing and selling of homes and properties at Orange County, California.  

Posted via email from Explore OC Homes

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