TIPS, FAQS AND FYI
Why make it difficult when it’s not!
Here are our tips.
How Do You Qualify for a Loan?
We will show you how so you don’t have to stress. To start the process, you will need:
- Where you work
- Your income
- Any debt you have
- Your assets
- How much you plan to put down on your home
What is the Minimum Down Payment Required for a Loan?
This all depends on the loan you are applying for. The traditional amount is 20% down but there are so many options that require much less. A USDA loan financing requires zero down as long as the property meets the guidelines.
What's the Difference Between Being Prequalified and Pre-Approved?
The terms are sometimes used interchangeably, but there are important differences that homebuyers should understand. Pre-qualifying is the first step to home shopping. It gives you an idea of how large a loan you likely can qualify for. There is no application necessary with pre-qualification but there is with pre-approval.
If you want to get preapproved, your agent will need to verify your financial information and submit your loan for preliminary underwriting. A preapproval takes a little more time and documentation, but it also carries a lot more weight when you are bidding on a home. Get pre-qualified, it’s fast, it’s free and a credit pull is not required!
How Do You Know Which Home Mortgage Option Is Right For You?
It is hard to know how each would impact you, that is why we are here to help. Please don’t hesitate to contact a Rateplicity agent.
Whether it is your first home or one of many, applying for a mortgage can seem like an overwhelming experience. Juggling the financial and social aspects ahead of you can be daunting. The best way to maneuver towards success is to ask questions. At Rateplicity we have answers to your questions.
- Review your credit. Your credit history is one of the most important factors in securing a loan and will determine your interest rate.
- Be realistic about what you can afford.
- Be wary of making an employment change. Requirements may vary for certain loans, but many lenders will look for a 2-year history in many cases. *
- Choose your investment carefully making sure the property is a good value.
- Hold off closing OR opening credit cards and car loans: each item on your credit report represents a credit history. It is important to show a record of paying on time as well as not closing existing accounts even if they have a zero balance.
*Rateplicity offers loans that may only require bank statements and/or alternative documentations. Be sure to ask !!