Tips For Your First Home Mortgage
Make a small down-payment or no down-payment at all!
Talk to your lender about 0% down-payment programs, such as a USDA loan, or see if you qualify for an FHA loan with as little as 3.5% down!
Most states and county's also offer Down-payment assistance, which may help cover your down-payment and closing costs on a first home
Don't put your savings at risk!
Lenders will calculate the minimum reserves they require you to have on hand to close. If the cash to close is high enough that it causes you to pay less than a 20% down payment, and forces you to get Mortgage Insurance, understand the higher monthly mortgage is better than little or nothing in savings.
See if FHA can help you get qualified with less than perfect credit
In 2016 the average credit score of an FHA borrower was around 686, but borrowers with scores as low as 580 can qualify. FHA also allows for down payments as low as 3.5% if you're low on cash flow! Talk to your lender to see what you qualify for.
Only borrow what you can afford to repay
A helpful rule of thumb is that your monthly debt obligations should not take up more than 36% of your monthly income. This include credit card payments, auto payments, home payments, and any other monthly obligations.For example if your monthly income is $5000 a month, the total of your monthly payments (including your mortgage) should be around $1800. This allows you to still be able to afford the nice things in life, and save money to possible purchase a bigger house, or improve the one you buy!
Are You A veteran? Don't Miss Out
If you or your spouse are a United States veteran, served in the national guard or are currently in the military, you can qualify for a VA loan with no down-payment! Ask your lender about qualifying for a VA loan, and check out the eligibility chart at benefits.va.gov! Recent surveys have shown that many veterans are not aware of their VA loan benefits, if you recently got a mortgage, or want to refinance into a VA loan, we do have options for you!
Be patient during underwriting
For an easy and snag free loan process, try and keep your finances as boring and steady as possible. This means, don't charge up your credit cards, apply for other credit, or deposit/withdraw large amounts of cash without a way to document reason for these actions. When you apply for a loan, your lender will look at your credit accounts and finances. They look at everything again right before closing, and if there are any substantial changed it may delay your closing!
Use Your Lender As A Resource
Reach out to me to answer any and all questions you may have about a first mortgage, investment loan, or additional home purchase! All of my advice is free, and comes with the added benefits of my years experience and my knowledgeable team of mortgage underwriters !
Guild Mortgage Company is an Equal Housing Lender; Company NMLS #3274
Jamie Laskie is a licensed Loan Officer in Colorado for Guild Mortgage Company; Regulated by the CO Division of Real Estate. Licensed in the state of Colorado, NMLS #1641628. The postings on this blog don't necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. This information is not guaranteed to be accurate and shall not be construed as a guarantee of loan approval. All loans are subject to underwriter approval, and are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.
The information provided herein has been prepared by a third party and has been distributed for education purposes only. The positions, strategies or opinions of the author do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.