How To Get A Home Mortgage Loan

How To Get A Home Mortgage

Don’t Let Dropping Interest Rates Or Low Home Prices Get You In The Wrong Contract.

Many new home buyers are hear reports of low pricing and rates but there is more to that than you think. At Cross Roads Loans, we will educate you and teach you how to get a home mortgage and not buyers remorse.

How do I get a home mortgage?

The easy answer is to have good credit, low debt-to-income ratio, down payment flexibility, consistent employment, pre-approval, know your ideal budget and know the loan type you want. But as you can tell that’s a lot to do with little direction. We are here to help you get the mortgage that fits you properly.

I keep reading that my credit score is a big deal, why?

Your credit is a large indication of how you handle your finances and debts. Lenders grade you by your score and credit history.
How can you stay ahead of the curve?
Pull your credit report. If you have a credit score of 620 or higher you could qualify. We can check if your credit score qualifies, don’t count yourself out. Before submitting a home loan application check your credit history. Too many late payments in the past or other derogatory credit information can stop you from getting approved.

How much of a down payment will I need to make?

Down payments vary depending on the type of loan you get. Each lender has it’s own criteria for down payments. But in must cases you can expect to put down at least 3.5%. The more you can put down the better, this will lower your monthly mortgage balance.

Besides a down payment, what other expenses should I consider?

The most important expenses to consider beyond a down payment is closing costs, home inspections, home appraisals, title searches, PMI, credit report fees, applications fees and other expenses.

I just started my business, will I still be eligible for a home mortgage?

Yes and no, lenders will see you as a risk if you just quit your job. It’s best to wait a few months to have proof of stable income coming in. Before you think about submitting a home loan application make sure you have substantial income, coming in for at least 3 months or longer.

Do I need a zero balance on my credit cards to qualify?

No, but the less you owe the better. Your debts determine if you can get a mortgage. If you have a high debt to income ratio lenders are likely to disapprove you application. Your debts should not exceed 36% of your gross income. Also acquiring new debt isn’t a good idea during the home buying process.

Which documents should I start gathering?

The mortgage process requires a lot of paperwork so get ready. This will include:

  • W2’s from current and past employers.
  • 2 years worth of tax returns
  • List and information on ALL financial accounts (checking, savings, retirement etc)
  • List of all assets
  • Credit Report
  • Bankruptcy paperwork (if applies)