Have you been pre-qualified?
Pre-qualified for…what exactly? In our case, real estate, we’re referring to being pre-qualified (or pre-approved) for financing assistance. In most cases people find themselves ready to find a property to settle in and make a home, but don’t necessarily have the money readily available for a purchase.
If you’re in need of such financial assistance, the first thing you should do when starting your real estate search is meet with an agent or bank. It’s not tough to get the process started. You’ll simply fill out a pre-qualification form – a quick credit application. They will ask you for basic background information, employment history, and some banking information. From this, the potential bank lender will be able to pull up any debt collections you may have and your credit score.
Credit scores range from 200 to above 800. Generally scores below 620 are considered risky – 720 and over are fantastic.
By doing this the lender will be able to tell you where you are, so to speak. They’ll let you know what you qualify for – what exactly you can afford to go look at, so you’re not browsing for that dream home out of your league. Or, if you don’t qualify, the bank will be able to tell you how far out you may be, and tell you the best ways to get yourself caught up so you can be on your way.
Here in Gillette, if you’re looking to get pre-qualified, we work closely with Premier Home Mortgage. The staff are always friendly and very quick to get back to you with your pre-qualification information. There are a few different kinds of loans you may be approved for.
Conventional
– 95% financing
– Stick built only, no manufactured homes
– Interest rates weigh heavily on credit score
– ratios 29/41%
– Minimum credit score of 640 or DU approval
– Mortgage insurance unless 20% down
VA
– 100% financing
– VA funding fee of 2.15% first time and 3.3% subsequent use
– Stick built and manufactured homes
– ratios 29/41%
– Minimun credit score of 640 or DU approval
– Co borrower must be spouse
– VA appraisals ordered from VA, no choice on appraiser used
FHA
– 96.5% financing
– FHA upfront fee of 1.75%
– Stick built and manufactured homes
– ratios 31/43%
– Minimum credit score of 620 or DU approval
– Highest mortgage insurance at 1.35% annual
– Interest rate note affected as much by credit score
WCDA
– First time home buyers program
– $1500 minimum down
– Income caps
– 6 acres max
– Stick built and manufactured homes
– 41% max ratio if using second mortgage
– 620 min fico
– WCDA classes have to be done
RD
– 100% financing
– Income caps
– 2% upfront fee, .4 annual mortage insurance
– 620 min fico
– RD gets 10 days to review file
– 41% max ratio, with ratio waiver 43% max
So, have you been pre-qualified? Talk to an agent to get yourself started. We’re here if you have any questions!
Summer Robertson of The Robertson Team
Team Properties Group, LLC
(307)250-4382
robertsonsummer@gmail.com