So you are thinking about buying a home in Wayne or Pike County PA. Perhaps you’ve
Maybe you want a community with amenities like The Hideout or Masthope, or you prefer an inexpensive, affordable cottage that is not in a development. Location & house features aside, there is MUCH more to consider before making your move.
More important than hunting for your “dream home” is learning if you qualify for a mortgage. In the infamous “glory days” of the past it seemed that anyone able to fog a mirror got a mortgage. That’s a rather gross exaggeration, but it was easier to get mortgages before the current housing crisis. The increase in short sales and foreclosures makes many lenders much more cautious these days.
3 Simple Tips For Mortgage Qualification
1. Pay Rent On Time. If you are currently renting, always pay your rent on time and keep all of your receipts or canceled checks. A good track record is very important to lenders!
2. Save Your Money. Keep a savings account, maintain a healthy balance, and add to it frequently. This shows lenders that you are responsible. This is especially important if you “live at home” with your parents and do not pay rent. Someone who pays no rent, living paycheck to paycheck with no savings, raises red flags with lenders: they see that as being unable to manage money and thus, high risk for default. (You will need that saved money for a downpayment, closing costs, home inspections, homeowner insurance, repairs, etc.)
3. Watch Your Score. Do not max out your credit cards, and always pay on time. Establish your credit with about 3 different cards, always keeping balances at less than 30% of the available balance. If your available credit is $1,000, avoid carrying a balance of more than $600.
These tips seem like mere common sense…because they are! There is more to consider when buying a home…this is just a start.
Because of all the different programs available through FHA, the VA, Rural Housing, etc., you don’t necessarily need gobs of money in the bank to qualify for a loan…but you do need an established history of good money management. A good credit score extremely important. Some lenders will not approve borrowers with scores below 640 (or possibly 620). Some state that they will consider 580 scores but often end up denying halfway into the process when more red flags surface.
Speaking to a mortgage professional is an excellent first step. Jason Wiggins has been a wonderful help to several of my clients over the years and is one of the most professional, courteous, and straightforward mortgage experts I know. Only a few lenders make my “short list.” Contact Jason to figure out which mortgage program would work best for you and see how much house you can afford to buy.
Don’t put the cart before the horse and fall in love with a house only to discover you can’t afford it. Getting a mortgage pre-qualification first will save you much time and heartbreak! Tell Jason Karen Rice sent you. You will be glad you did!
Toll Free: 866-723-9934