My credit score is in the low 600s but I have a lot of cash on hand. For instance I’m looking at buying a house for around $80000 and I can place up to $30000 down. Obviously I need to borrow the rest. What kind of programs are there for my situation?
Not many with a poor credit score. I would suggest looking for a house buy auction that was repossessed.
Look especially at getting an FHA mortgage loan. I would not place that much down if it is not necessary. Buying property now, even though prices are low and interest rates are low,properties are still falling in value.
Since this is the case you would be putting your money into a cesspool until your property started appreciating in value. If when you make your substantial down payment your property shows a depreciation then so have your down payment.
Place as small down as possible until the market show an improvement.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.
Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.
He will fill out this application, which takes awhile so grab your pet beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to buy.
When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need to do he can then issue you a pre-approval letter so you can buy a home. In this pre-approval letter will be the amount of house you are qualified to bought.
Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he force have a referral.
Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.
If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.
You should select the loan that best suit your financial condition at the time. That could be an flexible rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some flexible rate mortgages only adjust once.
Make sure your mortgage broker clarify all your options so you may make an intelligent choice.
What force be excellent for one person force not be excellent for you, in other words just because your friends and all your real estate buddies are telling you about the fantastic fixed rate they got, your financial situation force call for a touch else.
So select the best option for you and your financial situation.
You should also get a Excellent Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.
Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker force question for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you chose on what mortgage program was best for you.
I hope this has been of some subsidy to you, good luck
“FIGHT ON”
i would really try to pay down your debt to credit ratio first. this should see a pretty quick jump in your score. also the lender really wants to know what kind of living deprivation’s you have on a monthly basis. the best thing to do is go to a bank or lender and they will tell you exactly what you should pay down. ps. never cancel your credit cards after you pay them off. this will lower you available credit which in turn lowers your score. when all else fails time heals all credit scores.just make sure you don’t miss/make late payments.
FHA all the way. But I suggest that you take some of that 30,000 and place it into any debt that you have right now. It will boost you score a bit and the better the score, the better rate you will get. If your score is in the 600′s now you should be able to get a mortgage. I would just pay off some debt that I do have and make my credit score a small higher before starting the process.
credit-report-free.totalh.com – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.