Qualifying for a home loan

I just wanted to go over what an Mortgage underwriter looks for when qualifying someone for a home loan. They first look at a person's income compared to their debt and proposed housing payment. They want a person's housing payment to by 31% or less of their gross income. They want the housing payment plus debt payments to be 41% of the gross income or less. If a person grosses 3000.0 per month, they would want the maximum housing payment to be $930.0 per month or less.The $930.0 per month includes the monthly real estate taxes and homeowners insurance. They would want the housing payment plus other monthly debt to be $1230.0 per month or less. That means they want either car loans and or credit card payments to be $300.0 per month or less. You can use the mortgage calculator at the bottom of the page to see how much of a loan amount would equal the mortgage payment. In this example the loan amount that has a total payment of $930.0 per month is $120,000.0. In most areas that can buy you a nice starter home which is less than renting the same house. A mortgage underwriter would also look at your credit report to make sure that you are paying your bills on time the last year. They now want a credit score of 620 or above. They also like to see at least three accounts or more on your credit report. If you dont have that many accounts on your credit report, you should add another credit account. You could also ask your utility company to report your account to the credit agencys. If your credit score is not high enough, I will be giving tips on how to remove bad credit items. They do look at the property that the loan will be attached to ,but basically I have just described what mortgage lenders look for when qualifying a person for a home loan.

More than one way to become a homeowner

Most people think that the only way to become a homeowner is to go to the local mortgage lender and get a loan to buy your dream homes. There are other ways to becoming a homeowner. You can buy a home with seller financing. This is available when a person owns a home free and clear and wants the income from the payments of the seller financed home. You can also get seller financing even if the current homeowner has a loan on the home. It is called a wrap around mortgage or subject to financing. The current person keeps the current loan in place and he sells the house by putting writing a new mortgage with the prospective buyer. This is usually done for a short term like three to five years. After that time period ,it is up to the new homeowner to refinance and pay off the old mortgage loan. You can also become a rent to own buyer and have some of the rent payment be applied to the down payment. You then dont have to save for the down payment and just have to get a loan when you finalize the purchase of the house. I will be giving tips in the future on how to qualify for home loans and how to find seller financed properties