Thursday, February 23rd 2017

Question

How to prequalify for a mortgage?

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19th Dec 2009 by Burt Carlson

The first thing to do is shop around and find someone you feel comfortable with. Ask your friends, family members and co workers. Once you have someone in mind go meet with them face to face if possible. However, a knowledgeable mortgage professional can do an excellent job on your "pre qualification" by phone, fax and e-mail. There are three basic elements in qualifying for a loan. First, how much are you prepared to put down? Second, what is your credit score and what does your credit history look like. Third, what is the relationship between the income you can document and your debts (the debts from your credit report plus the estimated mortgage payment) this is called debt ratio. In today's world you must meet all three tests in order to qualify for a mortgage. The lowest down payment program available today is FHA and requires only 3.5% down. The minimum credit score to qualify for a loan today is 620. Depending on a borrowers profile a debt ratio as high as 55 may be acceptable although low 40's is preferred. If you are weak in any one of more of these tests try and figure out how to improve you situation. Once you think you can meet all three tests then find a mortgage professional get your pre qualification started!

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6th Dec 2009 by Tom Lindmark

Actually this question is probably mis-worded. Many people who are contemplating buying a house will first go their bank or some other mortgage lender and have them take all the relevant information about them in order to find out how much of a house they can afford to buy and to get a commitment to lend on a future purchase of a house. They are then prequalified to buy a house and can shop and assure any seller that they can indeed qualify for a loan and in fact are already approved. I suppose you could have a mortgage lender run your credit report and take some base information from which they could tell you that you could probably qualify for such and such a loan. In this new era of tightened lending standards that's a risky approach and you could find yourself disappointed when the loan actually goes to an underwriter. Better to go all the way and get a commitment for that mortgage before you start shopping.


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3rd Nov 2009 In Mortgage 2 Answers | 1581 Views
Subjects: mortgage, mortgage prequalify,

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