what is the requirement for $400k home loan?

Question

What is the minimum requirement to get a loan for $400,000 or any loan. I want to make sure what exact criteria that need to qualify. How long you have to work in the same company or multiple company to combine a minimum requirement that they need? how much you have to earn in monthly gross if you do it yourself or a co-sign include? what do bank need in minimum % down payment and closing cost?. Sorry if i ask too much questions. I want to understand what i will get myself into. I know there might be more requirment that i didn't listed. But I just need this basic informations to see where i stand for a first time buyer with a credit score of 750.

Answer 1

Every lender has its own requirements. The three things that help determine your rate are income, credit history and cash on hand. Most lenders are no longer granting stated income loans w/ zero or small down payments. Most lenders are requiring 5-10% down (20-40 k on $400,000 loan, not including closing costs) with proof of income. Most lenders like to see a history of 2 years in the same job with reliable income. And of course a good credit history. You should have 3 active credit sources (ie. car loan, credit card, school loan) that are reporting to the credit bureaus. I hope this helps you. Most importantly: understand your loan. Read every line. Understand points, APR, fixed rate vs. variable rate, interest only, amortization, negative amortization, balloon payments, penalties, etc. If you don't understand some of these terms YOU WILL GET BURNED, guaranteed,

Answer 2

The first thing you need to do is sit down with a reputable Mortgage Consultant that will get all the information from you to see if you can qualify for the home without putting you in debt over your head. They need to run your credit, look at your finances and run the scenario through an underwriting system. Then you will know if you should purchase the home and exactly what you need to be able to get it done.
They should also see what type of first time home buyer programs you may fit into.
I wish people that don't know whats going on would stop answering questions and stick to their own expertise. Get information from a reliable source. It's the best way to go.

Mark Marchand
Your Mortgage Consultant For Life

Answer 3

Sounds like your credit is good. You could probably get 100% financing. You total debt-to-income ratio should be less than 45%. As long as you have a two year work history, you don't have to be at the same place to use your base salary. If your debt is typical, you should qualify for a housing payment 30% of your salary. $400,000 should be;

$2,662 mortgage
$320 PMI
$500 Taxes
$75 Insurance
$3,557 Total

You should make $140,000 annual salary.

Answer 4

750 score will get you 100% financing
the requirement for job history is 2 years doing the same type of work if you have been at different jobs but same field no worries there
the national average of closing costs is 4.5% this is right off freddy macs site.
there are some great ways to cut down closing costs also have seller cover most of your closing

http://www.directlendingplanet.com/article6.html

also consider making sure you are getting the best deal

as far as your income it is best so not have more than 40% of your income that is monthly gross income including tax and ins i
your mortgage payment the payment 30 yr fixed at 6% is 2398.20

gross income is what you make less normal bills car payment credit cards etc.

Answer 5

Each lender has their own criteria and the criteria can vary from one type of loan to another, i.e. FHA, VA, conventional, jumbo, etc. You'll have to ask them what their criteria is.

Some VERY rough guidelines:

Mortgage payment no more than 28% of gross income.

Total debt including mortgage of no more than 35% of gross income.

Sufficient down payment for the loan program in question. That can vary from 0% to 20%

Sufficient funds for closing costs.

Sufficient funds after closing costs for the first 2 months worth of mortgage payments.

And ignore anyone who tells you to e-mail them in this forum! Most of them are scammers from Nigeria or Latvia who will rip you off blind!

Answer 6

Depends on the bank. Each bank is different. There really isn't a generic answer.

Answer 7

Email Joseph W. Ignore the other clown-like moronic answers.

Answer 8

First is an insatiable desire to be homebroke ( u wont find that in the dictionary by the way). Second you must want to sit around your marble top counter eating ramen noodles. Lastly, must believe in Santa cause thats how your kids will be getting gifts.

Answer 9

stupidity

you wil have to earn like 1.2 million to pay it

calculate how many hours that is

then buy a cheaper place to live, or move to where you can get a cheaper place

like in NH I saw a very nice house on 2 acres with a nice view for like $70K