Getting pre-approved for a home....?

Question

im 23 and pre approved for a home with my dad for $560k HOWEVER, is it possible for me to get pre approved on my own? maybe with co signer??? my credit score is in the high 600's???

Answer 1

YOu can get approved if your middle credit score is 580 or higher @100 percent. But lenders look at other factors - 2 yr job time, income, if you can afford the home, etc.

"maybe with co signer??? my credit score is in the high 600's??? - - If you are already approved with your dad - and talking about a co-signer....Sounds like your dad is already your co-signer. ???

Other information that will help you:

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.


Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

Decided on the type of program (loan ) you are wanting. A 30 yr fix is still roughly at a 6.5 rate right now - but if you are needing a 90 percent ltv the rate is around 7 percent and a 95 ltv is 7.375 and a 100 percent rate is 7.5 ( This is a estimate only, since I do not know what your credit score's are....There are also, interest only loans - adjustable loans, option arms (where you pick the payment, from 4 payments, including interest only). Interest only are lower payments, but nothing is being paid on your home. Some self-employed ppl like the payment options, in a lean month when money is tight., they can pay a lesser amount.

Some helpful links for you:

1. http://www.nehemiahcorp.org/

http://www.fanniemaefoundation.org/...

http://www.fha-home-loans.com/

http://www.freddiemac.com/

Answer 2

With a credit score in the high 600's you should be able to get approved for a home loan without a co signer. You will probably not qualify for anywhere near the 500+K mark that you got with your dad...but being 23 I don't think you really need a home worth that much. I just bought my first home a couple of months ago. GOOD LUCK!!!! And get a rate lock...as rates are going to continue to move up in the coming months.

Answer 3

yes,
factors are employment: how many years on your job
debt-how much in monthly revolving debt do you have
your comfortable payment-what are you comfortable with as in payment

If you have been employed for 1 or more years you can go full documentation all the way down to 580 credit score. High 600's as you stated will get you a decent convential loan. However you need to stay under 417K to get the conventional rate. If you go over than you have to pay a Jumbo rate or nonconventional rate and add .25 points to the rate for that

Hope this helps and I am in Northern CA if you should have additional questions email me.

Answer 4

It all depends on how much income you bring in per month. A lender will approve you for a loan by yourself if you make enough per month. If you wanted a $560k loan your payments per month with a 5.75% rate would be about $3268.01. With that said you would need to have an income of about $7,000 per month. This is based on a zero down. If you put a substantial amount of money down then obviously your income requirement would be less.

Answer 5

I just bought two houses. My credit score was also in the high 600s. It's hard, because the minimum is 625 for most lendors. You can do it, but they might try and give you one of them bullshit Adjustable Rate loans. Also, remember, although you are approved for 560k, you don't have to get something that cost that much. If its just you, get something thats in the 300-400 range, build your credit, sell and then upgrade

Answer 6

With a 680 you can do a no doc loan for whatever amount. They may verify rent history and then have you sign a payment shock letter though. Odds are you will get the better rate with your fathers credit. Good luck.

Answer 7

Yes, atleast I know I could get you qualified with probably more than one of the lenders I utilize, however the amount you get qualified for would be dependent upon your income and possibly employment history.

Your Credit score is definitely not the issue in this case from what you stated.

Answer 8

What do you do for a living!?! You're 23 and got approved for 560k??

Try getting approved without your daddy.....

Answer 9

Certainly you can qualify for a loan with scores like that. That question to be certain of is "can I make the payments?" Here's an article that leads you through that process.

http://www.danmelson.com/posts/1147464929.shtml

Answer 10

This question should be directed to your bank or a mortgage lender.
My guess without knowing your credit history, income, work experience, down payment, etc., is that you would not qualify on your own.