What You Need to Get A Mortgage in 2012
- Generally a Credit Score of 620 or higher. FHA loans may qualify lower scores
- Acceptable Debt-to-Income Ratio. Zero is very good. 50% isn’t.
- Verifiable Income. It’s tough for entrepreneurs these days.
- Down Payment. This really varies from lender to lender from zero for VA and USDA programs to 25% for some conventional banks.
The Steps to Get A Mortgage
- Determine what you feel you can afford. Include mortgage payment, taxes and maintenance.
- Know what your credit score is up front.
- Find a Lender. My expertise is homes not loans, but I can send you to good folks who do know.
- Choose a loan depending on how long you plan to own, your down payment and debt situation.
- Get pre-approved for a loan.
- Find a property. Get your offer accepted – that is my expertise!
- Get home inspections – know your prospective home inside & out.
- Hold your breath – banks are still throwing around surprises at the first, middle and last minutes.