I need money….I need a loan. Which ones are there? What do I qualify for?
For the most part, today, there are 3 types of loans.
Conventional is typically used when someone has a down payment of 10% or more.
FHA is government backed financing that requires 3.5 min down payment.
VA is 100% government backed financing that is available to veteran’s or active duty military.
If you don’t have more than 10% down, than it’s very likely you’ll end up with an FHA loan unless you’re in or were in the service.
Most lenders require the following documentation & have similar lending guidelines:
-You must have a job. (& have the same job or have been in the same industry for the last 24 months)
-You must have a minimum fico of 620. (There are a few lenders out there that will loan with a 600 fico)
-You should have at least 2 months reserves in the bank. (reserves meaning 2 months of your future mortgage payment)
-You should have a DTI ratio under 45%. (DTI=Debt to income. You actually have to prove you can afford it)
The average lender will ask you for all your documentation before they will even entertain qualifying you for a loan. Good news is this is worth your while.
The last thing you want is to find a place, get your offer accepted, only to realize you can’t get a loan.
Today is it crucial to have your pre-qualification letter from a direct lender before you even start looking.
Seriously, if you don’t, YOU ARE WASTING YOUR TIME.
If you need a lender & don’t have a lot of time to waste, hit me up. I have a highly recommended lender who will be at your service.