6132 Shares

What are the qualifications to get a mortgage?

What are the qualifications to get a mortgage? Topic: What are the qualifications to get a mortgage?
July 19, 2019 / By Milly
Question: This year we plan to rent from august until august of next year. after that we want to get a mortgage to buy our first home. we just moved from indiana to florida so my job history for right now is only 2 months at my current job. my credit score is between 598-629. i just opened 2 credit cards to use this year to help with my credit. i also have a student loan that was deliquent for 180 days but it has been current since jan of this yr and will stay current . So after this yr my credit should be around 700-720. my job history will be over a year, the only things that will be on any of my reports is the student loan and credit cards. will that be good enough for an approval? what else would they need? Like what else cones into play? i know income is a biggie but idk what ny income each month will be like in a year. right now im only working 30 hours a week 8.50 an hour but in 6 months ill be getting a raise and making $13 an hour, plus my husbands income (right now hes in college and unemployed.) we also wont have too much for a down payment. Maybe 3-5%.
Best Answer

Best Answers: What are the qualifications to get a mortgage?

Lilianne Lilianne | 8 days ago
You may not be able to buy a home as soon as you would like but it is not impossible for you to ever buy a home. Improve your job history, your credit, and save, save, save. From what I have seen, a credit score that is about 700 is about the ballpark for consideration. You should be able to offer a 20% down payment. Also, it helps if you can show a higher income. It's great that you will be getting a raise and that your husband will finish school and become employed. In building your credit, be careful to not overextend yourself. I would only put things on credit cards that you can pay the entire balance off at the end of the month. Another way is rent-to-own, or contract for deed. I think neither of these is desirable because they're dicey, will put you in a vulnerable position, and you may be in a worse off position than if you just rented an inexpensive place. I would also start doing homework on houses and house maintenance so that when you do finally choose, you will be able to identify expensive problems and pass on the house. You don't want to buy yourself a money pit. Good luck.
👍 204 | 👎 8
Did you like the answer? What are the qualifications to get a mortgage? Share with your friends
Lilianne Originally Answered: How do I find a good mortgage broker for an investment mortgage in my area? (Mobile, Al) 55k needed plus 10k?
First of all your credit is a national credit report not just for the city you are located in. I don't understand how you are attempting to purchase the property for flipping. Why do you need a mortgage? How long will it take you to flip the property? Your credit score will determine what interest rate you will get,not the mortgage broker. The mortgage broker will give you the best score possible based on your credit score, he does not get paid for filling out applications and running credit scores, especially when heunderstand that there is another mortgage broker about a block away. So find you a mortgage broker, fill out an application so he can run a credit check and get your credit scores and get you the best mortgage based on your credit score. You will need to have available for him #1 Two (2) yrs federal income tx and w-2. #2 One month of pay stubs #3 Six months of bank statements from each bank you conduct business with. Also any 401 k plans you might have at your job. Take care of your business and stop sitting on the log. I hope this has been of some use to you, good luck. "FIGHT ON"
Lilianne Originally Answered: How do I find a good mortgage broker for an investment mortgage in my area? (Mobile, Al) 55k needed plus 10k?
Quote ....'Im trying to buy a house to flip to make the downpayment on another house I'd later like to buy." - I have to ask, is there a reason other than the downpayment why you need to buy the first house? If you have excellent credit and a downpayment why not just buy the house you really want. There's a lot of programs now for 100% financing and investment properties. I am a broker with 1st Metropolitan Mortgage (www.1stmetropolitan.com) and we are not tied to just ONE lender - we have over 200 to choose from and can work in all states with the exeption of NV and HI. Let me know if I can be of help. I am currently in TN and AL is no problem. All advice is free :)

Justy Justy
It sounds like you have a successful plan. The easiest loan program to get a loan is FHA and the requirements are almost right up your alley. You need a credit score of 640 and be current on all credit accounts with no late payments in the previous 12 consecutive months. You must also pay off (or become current) on any old debt (stuff you may have blown off or forgotten) that is listed on your credit report. This can include old apartment debt, judgments, medical expenses, child support, etc.. Getting the credit cards is a great idea. Another good idea is over the course between now and when you are ready to buy is to periodically ask the credit card companies for higher credit limits even if you have no need or intention of using it. It just adds to your over all credit appearance in case you don't want to go FHA. Also don't forget to save those pennies for your down payment and closing costs. Remember, absolutely no late payments! The harder part will be getting the loan amount you need by that time. The lender bases this decision on your average income over the previous two tax years. For that reason you may have to push the plan an extra year for it all to work out. Good Luck!
👍 80 | 👎 6

Gretel Gretel
Sorry to throw water on your dream - its just isn't possible - unless you've got wealthy parents who are willing to loan you 30 or more thousands. You will not be approved for any loan - period. I say now, live as cheaply as possible. Put a lot of money in the bank, pay off your loans ASAP - paying off credit cards will NOT increase your credit score at ALL! Buy as much stuff as you can from yard sales and thrift stores! Good Luck!
👍 73 | 👎 4

Gretel Originally Answered: Do I need a mortgage service company or a mortgage broker to write mortgages for owner financed deals?
Neither a mortgage broker or a mortgage service company would want or take any part of this private deal between two individuals concerning financing. A mortgage broker is in business to provide loan services between his clients and a mortgage lender. A mortgage service company is in business to collect monthly mortgage payments on behalf of mortgage lien holders that do not have the means of collecting these monthly payments themselves. It appears as if you might be having difficulty about a owner carried mortgage and a rent or lease to own agreement. If the owner is willing to act as the bank an finance the property you would draw a contract up to that effect listing the amount to be finance, the down payment, interest rate, the terms of the loan (Number of years the owner will finance the mortgage, this could be 5-10 years) Once these terms have been agreed to and signed by both the seller and buyer, you would take this document to a local escrow and title company. The escrow company would prepare Escrow Instructions based on the contract the both of you have signed. Both of you would be required to sign these escrow instructions. These two companies would make sure your purchase transaction is completed according to local, state and federal real estate laws. If there is additional information needed the escrow company or title company would request this Information or documents. Using this method to purchase the house your name would be on the title deed. You would be required to pay the semi-annual county taxes as well as the annual hazard (fire) insurance policy. You would be required to pay the monthly mortgage payment principal and interest to the seller. If you fail to pay the monthly mortgage payment as agreed the current seller would be required to follow the foreclosure procedures of the state in which the property is located. In my opinion this is the best method of purchase of the two offered. A rent or lease to own financial situation would leave the title to the property in the name of the seller, until you pay the complete price of the house, after which the title to the property would be transferred to your name. Failure on your part to pay the monthly payment as required could place you in the position of simply being a renter and essentially voiding the contract. This type method of financing normally favor the seller more so than the buyer. I hope this has been of some benefit to you, good luck. "FIGHT ON"

If you have your own answer to the question What are the qualifications to get a mortgage?, then you can write your own version, using the form below for an extended answer.