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Pre
Qualify for a Home Loan NOW!
- First
time home buyer loans
- FHA
home loan
- 100%
financing loans
- 103%
financing loans
- Refinancing
loans
- Home
equity loans
- Conventional
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- Investment
- Less
than perfect credit loans
- Home
Improvement Loans
- Stated
Income Loans
- Damaged
Credit Loans
- Seller
contribution ..
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Home Loans
Houston frequesntly asked questions.
Question:
I
want to buy a home what should I know?
Answer:
Your
CREDIT and Debt to Income Ratio are the biggest
part of qualifying for a home loan. If your credit is not that good,
than a good down payment (3 to 5%) wiill help. If you have no money
to put down you might qualify for a FHA loan where
you can use gift funds with a qualifying property, BUT, you would
still need to have qualifying Debt to Income Ratios. Which means
you can't have too much debt versus your income. If you have old
bad credit, you might still qualify.
Question:
What
is Sub Prime?
Answer:
Sub-Prime
is type of loan program for someone who currently has bad credit
and wants to re-establish their credit and get into a home loan.
This loan program offers higher interest rate and genrally short
terms, for example 2 to 5 year ARM (Adjustable Rate Mortgage). This
is great way to help you get into a home and refinance after establishing
good mortgage history.
Question:
I
have little money to put down and my credit is not that good. Can
I qualify for a home loan?
Answer:
YES,
we work with different lenders who have different different programs.
that you may qualify for. FHA programs allow you to put
as little as 3% down and you are able to finance your closing cost.
In order to qualify your credit can be ok. That means NO lates in
your RENT or current Mortgage. Collections two years or older and
Medical collecrtions might be ok.
Question:
What should I know about my CREDIT?
Answer:
If
you plan on buying a home do NOT open a lot of
lines of credit or make any big purchases. These inquiries and purchases
will hurt your credit score and your debt to income ratio. With
that said do not close all your credit lines (just pay them off).
Closing your old credit lines hurts your credit length, which helps
your credit score.
Question:
What
is this Debt to Income ratio I hear all the time?
Answer
According to
FHA guidelines, borrowers and / or their spouse must qualify according
to set debt ratios which are used to determine whether the borrower
can reasonable be expected to meet the expenses involved with home
ownership. There are two ratios.
Add up the
total mortgage payment (principal and interest, escrow deposits
for taxes, hazard insurance, mortgage insurance premium, homeowners'
dues, etc.). Then, take that amount and divide it by the gross monthly
income. The maximum ratio to qualify is 29%.
Total amount of new house payment: $650.00
Borrower's gross monthly income (including spouse, if married):
$2,400.00
Divide total house payment by gross monthly income: $650/$2,400
Debt to income ratio: 27.08%
Add up the total mortgage payment (principal and interest, escrow
deposits for taxes, hazard insurance, mortgage insurance premium,
homeowners' dues, etc.) and all recurring monthly revolving and
installment debt (car loans, personal loans, student loans, credit
cards, etc.). Then, take that amount and divide it by the gross
monthly income. The maximum ratio to qualify is 41%.
Total amount of new house payment: $650.00
Total amount of monthly recurring debt: $300.00
Total amount of monthly debt: $950.00
Borrower's gross monthly income (including spouse, if married):
$2,400.00
Divide total monthly debt by gross monthly income: $950/$2,400
Debt to income ratio: 39.58%
Please note
that the above indicators do not exclusively determine whether or
not a candidate will qualify for an FHA loan. Other factors will
be considered, including credit history and job
Question:
I
want to refinance for a Cash Out to fix up my home or consolidate
my bills. What can you tell me.
Answer:
If
you want to refinance your property do a little math. Figure out
how much your property will appraise at, how much you owe and how
much you want out of the loan. If you plan on rolling in (including)
your closing cost to the loan add that amount.to the amount of the
loan. Texas only permits up to 80% of the home value (appraisal)
for cash outs. It can get confusing so e-mail us. :)
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