Preparing To Qualify For Mortgage

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Preparing To Qualify For Mortgage

Preparing To Qualify For Mortgage: Tips

As you could imagine, there is a common theme amongst potential borrowers when it comes to buying a home and it is how they can go about Preparing To Qualify For Mortgage.  This isn’t just something most people can just walk into and just get the best rate or the exact loan they want.  Potential borrowers are going to have to have patience as this process takes time.  Typically, if a borrower has documented income they will be able to qualify for a mortgage.  Having documented income is key so that you can go through the pre-approval process to see if your finances can handle a loan at all.  A common misconception is that if you have bad or damaged credit with derogatory items in your history you will not be able to obtain a home mortgage, well this is not the case.  Since the Great Recession of 2008, there have been new rules and regulations in the mortgage industry that will assist in getting into a home even with damaged credit, but the fact remains there is Preparing To Qualify For Mortgage that needs to be done.

Preparing To Qualify For Mortgage: When To Start?

It is never too late to start Preparing To Qualify For Mortgage, even if you just went through a rough time and had to go through bankruptcy, foreclosure, deed in lieu of foreclosure, or a short sale.  If you have recently gone through one of these events, the worst thing you can do is abandon your credit and not take care of it.  Preparing To Qualify For Mortgage will require that you take the proper steps to repair your credit and go through the required waiting period for the loan program of your choosing.  The worst thing you can do is be discouraged during this time as it is not the end of the world by any means.

Preparing To Qualify For Mortgage: Re-Establishing Credit

As with anything, as time passes, your credit will begin to improve and if you take on some secured credit cards, you can see significant increases in less than a year’s time.  A secured credit card is one that is opened with the starting limit being the amount you put down to obtain the card.  The minimum you should look to start with is a $500 limit.  For every secured credit card you open, you can look to increase your credit score by about 20 points for every line opened.  As you can see, this is great progress when Preparing To Qualify For Mortgage.  In less than a year you could possibly see your credit score back up to around 700 in no time.

Preparing To Qualify For Mortgage: Minimum Requirements

While Preparing To Qualify For Mortgage you need to be familiar with the type of loan program you could be approved for.  For example, to qualify for a 3.5% down payment FHA Loan, you are going to need a 580 FICO credit score.  For Conventional Loans, the minimum FICO credit score needed is a 620.  You need to know that when Preparing To Qualify For Mortgage that just meeting the minimum credit scores will not guarantee you a loan.  All loan programs have additional requirements that are needed in order to get approved and this will include waiting periods after derogatory items, debt to income ratio, verification of employment, and verification of income.

Preparing To Qualify For Mortgage: Conclusion

If you are Preparing To Qualify For Mortgage please feel free to contact me directly as I can assist you in obtaining your goals.  Feel free to call me at 888-900-1020 or email me at contact@loanconsultants.org.  Unlike others, I am available 7 days a week day or night.  I will work around your schedule to make sure this is the smoothest and most comfortable experience you go through.

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