Finally got a good credit score and enough for a downpayment. What's next to buy a house?

Question

I need an A, B, C explanation of what to do fisrt to get a good loan. From particulars, please!!!!

Answer 1

All banks just about offer the same products and loan programs with the different qualifications in each of their programs.

Your interest rate is based on your credit score and how well you have paid your consumer debt over time.

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.

He will fill out this application, which takes awhile so grab your favorite 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 purchase.

When you speak with the mortgage broker you will need the following documents to complete the loan application

#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 purchase a home.

In this pre-approval letter will be the amount of house you are qualified to purchased.

Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

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 might ask 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.

I this has been of some use to you, good luck

"FIGHT ON"

Answer 2

You have to pick a mortgage company that will give you a good rate. Even with a credit score of 550-600, you could still get stuck with a 8.0 intrest rate and your monthly payments will be very high. You need to get pre-approved and see how far your credit score will take you. They will ask you how much your income is and some other personal things (name, address, social security, birthdate, how long you have been employed, etc.) in order to see how much loan amount you will get and what interest you can afford. You can pre-approve with more than one company but the more companies that pull your credit, the lower your credit score will get. So its best to have just 1 or 2 pre-approvals, if neccesary. I don't know how long other companies take, but my company pre-approve their clients in 36 hours. Your next step is to find a house that you want to buy. This is the easiest part because all you have to do is look on the internet or in the paper and contact the seller. The seller has to handle all contract making. The hardest part is getting approved for a loan and the closing. Closing can last anywhere from 21 days to 45 days. My company is very good with helping their clients and explaning the whole mortgage and home buying process. I would love to help you with process because mortgage loans is what I do for a living. I hope that I have helped you. Also, you could contact me if you would like to see how much you would be approve for with my company or if you have anymore questions.

Tinnecha H.-Loan Officer
Delta Mortgage Services, Inc
[e-mail]

Answer 3

Talk to a loan officer. I'd recommend you talk to two or three and compare their answers, interest rates, closing costs. Keep in mind that there's more to a mortgage loan than the interest rate. How knowledgeable and/or confident is the loan officer? How many loans has he/she closed? Can he/she provide referrals? Is the mortgage company established or is the loan officer working out of his/her spare room (don't laugh--it happens).

Be prepared to answer questions and provide documentation about your last two years employment history, last two years residence, assets, debts, income, etc.

The loan officer will pre-qualify you. What that means is that after pulling your credit, he'll be able to tell you if you are qualified for the loan, based on the information you gave. Then you'll need to sign a loan application and provide documentation (paystubs, W-2s, copies of rent checks, driver's license, etc.) Once the LO has reviewed the docs, you will be pre-approved.

Then there's the sales contract for a house, and the appraisal. The LO will want you to pay for the appraisal up-front. Don't worry, that's standard. Usually about $325. Do not pay an "application fee" or anything else to the LO. You will probably need to put down earnest money and or an option fee, but that's paid to the seller and title company, not the LO.

Once that's done, you'll want a home inspection, but that is seperate and unrelated to the loan.

Let me know if you have more questions.

Good luck!

Rick
http://www.fairwaymortgagelending.com

Answer 4

Lets keep it simple. Contact a loan officer; they will lead you through the maze with ease; it's what they do.
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