Hope you all had a great 4th of July. Now that you know why people are declined a mortgage, I am going to summarize what to do when applying for a mortgage.
The number one thing to do is to know what you can qualify for. There is no reason to look for a million dollar house when you can only afford a payment for a $500,000 house. There are no more of the bad loans offered in the late 2000’s anymore (Thank God for this). That created a nightmare in our economy.
For a first time buyer going FHA or VA, your down payment will be a lot less than a conventional loan. You usually can qualify for an FHA loan with a minimum of a 640 loan. We will cover the subject of FHA loans and VA loans soon.
Secondly, you want to get different quotes from different lenders. Check to see the interest rates and points you will pay. Also, different lenders and banks may have different ideas or programs for your ideal situation.
Lastly, don’t rush into a loan you can barely afford. Live below your means. It will give you a
longer and happier life. A bigger house will NOT make you happy. Family time and less stress will make you happy.
We will talk about car loans next. Remember though, do not buy a car before you buy a house. It will severly affect your score. Till next time. Second Chance Financial Inc.