A mortgage prequalification is an initial approval from a lending company that states ifborrower’s income, debt and credit are good to grant a mortgage loan when planning to buy a house from Idaho Trophy Homes, for instance. As a preliminary estimate, it does not really guarantee approval. Know what the credit requirements for each different type of loan in order to get prequalified.
FHA loans require only a minimal down payment among the home loan options available. It is designed to help Americans fulfill their dream of homeownership. To qualify and obtain approval for these government-insured loans, you must have a minimum credit score of 620. An additional time to go through the underwriting process is required to prequalified or preapproved for credit scores below that minimum.
The advantages of being approved are numerous especially if you are planning to buy a home from Boise ID Home – Down payment is less than 3.5% of Sales Price, 100% Financing options available, Gift for down payment and closing costs are allowed, sellers can credit up to 6% of sales price towards buyers costs, closing coast are regulated and protect borrowers, no reserves or required
To prequalify for an FHA home mortgage loan, here’s what you need:
1. Stable employment history for at least two years with the same employer with steady and increasing income.
2. Less than two thirty day late payments in the past two years..
2. Good credit records for the past three years. Bankruptcy and foreclosure records must be at least three years old.
3. Approximately 30 percent of your total monthly gross income must be the equivalent of the mortgage payment an applicant is qualified for.
Prequalifying for an FHA loan does not necessarily guarantee that you can buy your dream home from Preston ID Real Estate. It helped you assessed your borrowing power and what you can afford in terms of a monthly mortgage payment.
What to Negotiate with the lender/servicer.