Your bank statements must show a positive status. Insufficient funds (NSF's) are a '"no-no."
You must have at least past three (3) months bank statements. Self-Employed, the last 12 months (along with past two years tax returns).
You must show proof that you are saving money (savings account statement, 401K, etc.).
You must have at least 2 years seasoning on your present job.
You must have one (1) year pay history showing that you are current on your rent or lease. Homeowners must be current for the past 12 months in order to refinance. (Receipts Required)
You must have a strong letter of explanation for any lates/derogatory accounts. The explanation must be due to an unforeseen or uncontrollable circumstance to be accepted.
All loans require you to provide information concerning your debts (such as account numbers, current balance, and monthly payments for all revolving or installment accounts).
Keep your debt ratio down. Your debt ratio can be no more than 41% of expenses. Example: Don't purchase a vehicle while you are trying to obtain loan approval for your home. Wait until you are in your home!
Qualifiers:
>>Credit Score
>>Debt Ratio
>>Seasoning on your job
Does this mean, even if I have 35 years on the job, making good income, I may not qualify if my debt ratio is too high?
Answer: That's correct.
If any one of these requirements are not in place, be patient. It's not the right time for you as of yet.
If your credit and debt ratio are the problems, our programs can assist you. We recommend addressing the root of the issues first, even before looking at listed properties and especially before putting a loan package together. If you don't, you are setting yourself up for disappointment.
We know that you want to buy a house and we are here to help you do just that. Only don't push past the issue, if you have credit or debt issues, address them, then we can put together an approving, credit worthy package. (If you were referred to us by a Loan Officer, we will send you back to them when your program is complete.)
Be patient, and don't allow your Loan Officer to push you. If they do, they are not looking out for your best interest. We have heard too many stories of people who refused to be patient for their time, who went ahead and were either turned down, after they picked out the house and furniture, or obtained the home exercising unscrupulous means to qualify. They are now suffering behind it all. They really could not afford the homes they purchased, or the second social security number they obtained through illegal means finally caught up with them, and they are serving time because of it. Good things come to those who are willing to wait for the Best that God has for them!
It is wisest to plan: Work at eliminating your debt, restoring your credit, and then seek to obtain your home. Then you will be able to enjoy the blessing of your home without the burden of debt.
Remember, if your circumstances says you are not ready, it's not THE RIGHT TIME, as of yet! Be patient! Your time will come! We are here to help you get there!
See the reason in real terms:
When you are seeking home ownership and have outstanding collections, charge-offs, late accounts, judgments, and try to apply for a loan with your credit in this state, there may be someone who will try to qualify you for a loan, but what will happen is you will be required to put down 25%-30%, charged higher points, etc. But if you will take the time to address the situation, you will only be required to put a small down payment of 3%-5%. Let's look at what the difference is in real terms.
Scenario 1: Debts and credit accounts remain as is, and for a home costing $200,000, credit scores 499, interest rate of 8%
25% down = $50,000
30% down = $60,000
Do you really have this kind of money sitting in your bank account? Most peopleple do not.
Your total monthly payment will be $1,100.65
Total payments = $396,234.00
Scenario 2: Go through our program, position and prepare yourself for debt freedom and credit worthiness and with a score of 640, interest rate of 4%
3% down = $6,000
4% = $8,000
5% = $10,000
Your monthly payment will be $954.83
Total Payments = $343,738.86
What's the difference? $52,495.14, plus the difference you paid in down payment $50,000+ in down payment, totaling $96,495.14 difference in payments. What is the best? It doesn't take a rocket scientist to figure it out. You know what the best is--the issue in most cases is PATIENCE. Your situation did not happen overnight and it is not going to be resolved overnight. This is reality. If you will be a student, be teachable, and walk through the process, in a short period of time, you can obtain your dreams and goals.
All Applicants must Register, if not already a Client. For Registration Information click here.
