Everybody has heard it. The news is all over the place. Banks and mortgage companies have tightened their lending standards. Gone are the days when anyone with a pulse could qualify for a mortgage. While it's true that lending standards are stricter than they were three or four years ago, banks are still making mortgage loans.
To qualify for a mortgage today, you need three things:
- A decent credit score (680 and above
- A documented income source
- At least 3.5% for a down payment
Your credit score is key to qualifying for a mortgage in today's market. The first step every potential home buyer should take is to meet with a qualified, local lender to assess their credit position. Don't waste time with "free" credit reports and on-line mortgage qualifications. Take the time to speak with a local lender to see available mortgage products for your situation. Most loan officers are able to "pre-qualify" you via phone and/or email. A good loan officer can provide you with a list of documents necessary for applying for a mortgage loan. It's never too early to collect the documents.
Down payments can be a roadblock for many potential home buyers. Again, a good loan officer can explain the options for coming up with the necessary down payment.
In addition to the down payment, your loan officer will explain the other costs associated with securing a mortgage loan. Once you have the facts and figures, you'll know if you are ready to start looking for your new home, or if you need to save a little more money before you head out on your search.
If you'd like contact information for qualified, local mortgage lenders, please let us know. We'd be happy to provide you with a list of loan officers we've worked with.
Morgan Rathmel (913) 269-2075 mrathmel@gmail.com
Marianne Damon (913) 221-5272 mariannedamon@gmail.com
