In general, what are the requirements in order to get approved for a mortgage?
Is there a minimum credit score?
Who/what is the best "subprime lender"? What is the best way to find a subprime mortgage?
2007-07-24 12:23:50 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
This depends on what you are looking to do IE refinance or purchase. For 100% loan to value purchase I can get it done with a 620 score for a refinance I need at least a 500 score. Any other questions I will be glad to answer email me at courtney@providencemrtg.com
2007-07-24 12:34:59 · answer #1 · answered by courtney02908 2 · 1⤊ 1⤋
Your question is very broad. Contact a couple of local mortgage companies, brokers or lenders, and ask them to advise you. The sub prime lenders are running scared at present, and people that could qualify a few months ago can't even get the same loan. Minimum credit scores are generally 500, but some go lower, with more down payment and the rates would be extreme. Work on your credit score and get it up to 680 and above and get a conforming loan, which would be much better for you in the long run. Home ownership is not for everyone as can be seen by the huge increase in the foreclosures recently. Get some serious professional advice, and even though this is a great site to get some, it cannot match the personal advice that you can get from a face to face with a professional mortgage person.
2007-07-30 11:40:42 · answer #2 · answered by H. A 4 · 0⤊ 0⤋
Each mortgage company has a set of rules, guidelines and credit scores that they have set for their particular mortgage company.
The first thing you should do is contact a mortgage broker so you can complete a loan application, after which he will run your credit report.
This credit report will give him your credit score. Get a cup of coffee or your favorite beverage when filling out the loan application this is not a 15 minute chore.
Your credit score will tell him what loan programs you are qualified for as well as the interest rate you can expect. This credit score will tell if you are able to get a 100% loan and if not how much cash you have to bring to the table as your down payment.
There are lots of documents and information the mortgage broker will need. I will give you a few to get you started.
#1 Six months of all bank statements you use currently, as well as any statements from your 401k at your place of employment
#2 One months of pay stubs from all that are going on the mortgage.
#3 Two years of federal income taxes and W-2s
After discussing the best loan program for you and agreeing on the program you want, the mortgage broker will issue you a pre-approval letter. Don't forget your good faith estimate (GFE). This will give you an idea of the cost of your loan. That
is in addition to any down payment how much additional cash you must bring to the closing table.
In order to preclude PMI when a lender will finance 100% of the house you are buying the mortgage industry have solved that problem by offering a 80/20 loan. Don't be afraid of them.
You have to understand that the increase in payment if the loans are adjustable.
Your first mortgage (80%) might be a fixed product, while your second (20%) could be an adjustable product. If you don't understand the product ask your mortgage broker and don't leave until he/she has explained it to your satisfaction.
Now once this has been established you should connect up with a real estate agent to find you a home. Upon finding a home you like the real estate agent will then prepare a sales contract for you and the seller to sign.
The mortgage broker will order an appraisal of the house to prove the value.
Once all the documents necessary has been collected the mortgage broker will order loan docs for the program that you agreed to earlier. Again don't plan on spending a lunch hour there to sign loan docs this is a process so be prepared to be there for awhile.
Don't sign the loan docs if anything has change from what the mortgage broker explained to you. Call and get an explanation.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-07-24 12:36:41 · answer #3 · answered by loanmasterone 7 · 2⤊ 0⤋
There are so many different loan programs out there, you can't really say there is a minimum credit score or requirements. Any mortgage broker will be able to walk you through the subprime world.
2007-07-24 12:56:28 · answer #4 · answered by Anonymous · 1⤊ 0⤋
It is tough to answer accurately, because there are so many variables that can change things.
Ultimately, if you are making enough money to cover the payments, then you will be able to find someone to lend enough to get a house. However, the sub-prime market is increasing in price and they are getting tougher with appraisals, since they have recently gotten stuck with a lot of foreclosures.
The best way to approach it is to look online for a "poor credit" loan, and then try to get your local bank to match the terms, that way, you get a local lender, with the best rates. From what I have seen, local lenders are more apt to take on a sub-prime case, if it looks like there are other companies that will lend as well. You can find out some more pertinent information and links at www.bestmortgageanswers.info/
2007-07-29 13:58:29 · answer #5 · answered by insureman613 3 · 0⤊ 0⤋
The four C's;
Credit; a credit report will be viewed to determine repayment history.
Compensation; due you have enough income to repay the loan.
Collateral; what are we lending for?
Cash; are you going to contribute to the purchase, as well?
2007-07-24 12:35:30 · answer #6 · answered by ? 4 · 1⤊ 0⤋