Easy Mortgage Broker
Getting a Mortgage for purchase or refinance is easy once you understand what is required. Basically, there are FIVE Factors involved in getting approved for a Mortgage. Here they are:
1. Credit History/Credit Scores.
Everybody has heard about the mysterious credit scores by the three main Credit Bureaus. These scores are a 3 digit number ranging from below 500 (poor) to 600 (average) to 720 and over (great). If you are new to the credit game Mortgage lenders will want to see you have credit history of two years and credit lines totalling $5000. Car Loans, credit cards etc will all work towards this credit history. Late payments on your loans work against you. Just make your payments on time and you will have great credit! Its really pretty simple.
2. Employment History:
Lenders like to see a two year history of employment preferably in the same line of work as a minimum to be considered for a mortgage. Even if you are self employed this is not a problem just so there is some sort of evidence to support the two year work history.
3. Debt to Income Ratio:
This figure varies from lender to lender but usually is about 38%. That is 38% of your income can go to support all your regular monthly debt - house payment with taxes, car loan, credit card payment, etc.
4. Down Payment or Equit Position:
For the very best loans lenders like to see a 20% down payment for a purchase or 20-25% equity in case you are looking to refinance. If you don't have these funds available, don't worry we can still work something out as we have low down payment loans. For a purchase have some closing cost funds available, usually 2-3% of the purchase price.
5. Documentation:
Basically this is just the paperwork to provide evidence for the points 1-4 above. Pay stubs, tax returns, letters from your employer all go towards making your loan approval. The rule is: The more documentation you have, the lower the interest rate, the less documentation you have, the higher the interest rate. Also, truthfully there are never any "No Doc" Loans! Eventually you will have to sign some documents to close the loan!
For a FREE consultation on how this all applies to you give me a call or click on this link and apply online now! Simply follow the three clicks listed below:
1. Go to Buyer Resources
2. Mortgage Center
3. Get Pre-Qualified
Or Call or Email us for a Personal Consultation at:
Office: 408-376-3628
Mobile: 408-202-0501
Email: paul@realpaul.net