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What are the steps I need to take to qualify for a mortgage?

Hi, everyone! I want to know if I qualify for a mortgage and if not what are the steps I need to take to qualify? Also, what kind of lenders do I look at and what type of loan is best for me? I am earning $70k a year in my current job but I have only been here for the past 7 months. I’ve had 2 employers in the past 4 years with higher salaries each move but same title. I’m looking for a property in the $150k range. My credit scores are 635 to 648. I have money saved up for a 3.5% down payment. I also live in a USDA loan eligible area. Thanks. by klaudon667 from Ambrose, Georgia. Feb 18th 2022 Reply

David R Youngs - Branch Manager & Mortgage Advisor (DavidRYoungs)
#64 ranked lender in Minnesota - 87 contributions

It sounds like you have a solid head start, in that you understand how employment affects qualification, knowing your credit scores and the type of loans you may want to explore. The FIRST step before starting your home search, is to identify the loan professional you want to work with. Someone that you believe you can trust, has your best interests at heart, has the products you would need, is willing to take the time to coach you throughout the process and will give you honest advice. Most people out there are "shopping" to try and identify the lowest rates. I strongly advise not to get caught up in that, because most everyone will be within .25% of one another (in most cases). Getting the right products, support, coaching and above all else, can actually get you through the financing process successfully, is what you want most. With lower credit score, I would recommend speaking to a licensed mortgage professional, through a mortgage only lender over an FDIC insured retail bank. Banks typically have higher minimum credit score requirements and even if you technically pass that threshold, their are extra conditions tied to getting the financing, which are called "overlays." Also bank loan officers often are not usually equipped to spend the time needed with their clients to walk them through the entire set of options and loan process. This may not apply in every case, but I believe you'd have better success with a lender who has access to lower credit products without the additional bank overlays. Most importantly, before you begin shopping for a home, you'll want to get fully "pre-approved" by a reputable mortgage professional first. Especially in this competitive home buying market, where there are more buyers than homes in most areas, many Sellers will not even look at an offer from a Buyer, without a pre-approval in hand first. The quality/level of pre-approval's varies lender to lender as well, so ideally you'd want one that most certainly will review your credit, income and asset documentation in advance. Some lenders also can "pre-underwrite" the loan file as well, based on an estimated sales price with a "to be determined" property address, to ensure you have the confirmed approval from the Lender for the home loan BEFORE you even start shopping. I hope this helps and should you have any further questions, feel free to reach out anytime at 651-356-7100 or email us at License #328679. Thanks for the question and I wish you all the best!

Feb 21st 2022
Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,431 contributions

The next step you should take would be to connect with me. I'm licensed in Georgia. Our first step is to process your application as though you plan to buy in the next month. This pre-approval process will identify your strengths and any weaknesses in your qualifications. Once we identify any weaknesses, we develop a plan for you to correct, improve or adjust your qualifications so you are able to purchase the home you want. Scores in the range you indicate are OK, but pricing is much better if we can get your scores into the high 600s or low 700s, which may be easily achieved. Having been in lending for over 40 years and 25+ exclusively in Mortgage Lending, I have developed a reputation for helping folks significantly improving their scores and getting into the home of their dreams. Reach out to me and let's get you started.Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified Mortgage Advisor and Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.Licensed in AZ, CA, GA, IL, MO, OR & WA. FL & TX coming soon In fact, NEXA is licensed in all states except MA and NY so give us a call. ~ 480-889-9000 - OR - 480-695-9300.

Feb 24th 2022
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