Thinking about purchasing your first home?

Here is the Fast Guide to Qualify for a Home Loan or Mortgage Loan.

If you are renting – or paying someone else mortgage, which is almost the same – there are the couple of things you need to know that could change your thinking and get you on the market to find a home.

We encounter Realtors / Real Estate Agents that still believe that a home buyer must have excellent credit, a permanent job and 20% for down payment! and we can only imagine that if a licensed real estate agent that does this for a living thinks this way then regular people may also believe that these facts are correct and this is why we created this small post to make sure that you the reader learn a bit more.

First, get your credit ready.

Depending on the type of loan you are looking for such a Conventional, FHA – Government loan or a Non-Conforming loan such as No Tax Returns needed loans, your middle score should be around 620 or more; however, for an FHA loan you don’t need a credit score if you can prove 3 tradelines such as phone, electric and cable or only need at least 580 middle score to qualify but the higher the credit score the best chances of getting an approval.

Second, review your income documents.

You will be asked for at least 2 years of income reported on the last 2 years of taxes or 24 months of continuous employment. Be prepared to provide 2 year tax returns and the last 30 days of paystubs. Like before, with government mortgage loans there are instances where you can qualify with less than 24 months.

Third, your bank statements, the money for down payment.

No, it is not necessary to wait until you save 20% of the purchase price for down payment. First time home buyer loans only require between 3% and 3.5% for down payment and these funds in some programs can be from a gift from a family member. There are some first time home buyer programs that do not require any money down! You can get a down payment assistance from a local government office, a charity or a grant.

Get approved for a home loan.

As you can see, it is not hard to get approved for a home loan. When you are renting, you are paying someone else mortgage! Why not yours?

For additional questions of information call your local mortgage broker at Optzions Mortgage in Florida at 239-908-3106 or visiting our webpage OptzionsMortgage.com, we will be glad to assist you obtaining your mortgage loan for your dreamed home.