Getting a loan on a home can be a challenge. Before I show you homes, there are a few questions needed to be answered. One of them deals with the financing. Will you need to borrow? Do you have a lender? I have a number of trusted and qualified lenders I work with that have numerous of lending programs that could be best for you. That process is getting the proper financing you can afford. The lender will work all the steps in order to get you prequalified for the home loan.
Lenders first will establish the borrower’s ability that he/or she will repay the mortgage loan, and check other debt, income, and other assets. In a loan application, there are six pieces of information lenders will require from potential borrower. They are as follows:
- Borrower’s Name
- Social Security Number (SSN)
- Property Address
- Estimate Value of the purchase
- Mortgage Loan Amount Sought
The finance factor will determine the approval or the interest rate based on the Fair Isaac Corportation (FICO) credit score. A credit score are based on these credit score factors and the threshold percentage.
- Timely Payments 35%
- Total Debt 30%
- Length of History 15%
- New Credit & Inquiries 10%
- Type of Credit 10%
All in all, the best score to get is 740 or above. If your score is 660, it’s considered a cautious risk, and lenders may give you the loan, but a higher interest rate. Under 600, it’s a red flag in the underwriting process.
My preferred lenders will counsel you on improving your score if you’re in the lower FICO score range.
-Jim Plummer, ABR, GRI, REALTOR®
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