Getting the Best Loan

A good lender is a high level financial investigation team. Sometimes it can feel almost intrusive as they try to find out more about you and your real estate goals.  Here’s why they should ask so many questions and what they should look at to qualify you as a borrower.

The goal is to make the process as smooth as possible for your purchase or refinance and get you the best loan for your situation (which can be as unique as your DNA).

  1. Their first task  is to ask you lots of questions about your goals
  2. Gather crucial personal financial information about you
  3. Proceed to find the program which works best for your current and long term home goals.
  4. Search lender guidelines to make sure your situation fits the lender guidelines.

There are over 35 items that go into determining a client’s ability to borrower. Three key components are Credit, Income and Down payment. Of course, there are more – your lender will walk you through the process.

Credit scores:  740 is the best and where we get best rates but lenders can do loans in many cases with credit scores as low as 620.

Credit history:  bankruptcies, short sales or foreclosures. BK’s we can usually do in 2 years depending on lender, short sales 3-4 years depending on program, foreclosures 3-5 years depending on program.

Income:  you don’t have to have a job to get a loan but you do have to have steady income which usually will continue for at least three years. Some income sources used to qualify borrowers are: W2 employment, self-employment, trust, corporate, social security, pensions, interest dividends, capital gains, rentals.

Down payment:  many options are available so this is really something to call your lender about, but you absolutely in many cases, do not need 20% down. For example, just to name a few options: Veteran Loans (0% down), FHA loans (3.5% down), Conventional Loans (5% down payment) Second Home Loans (10% down)