Not always, but the better the credit score, the better the interest rate and products that are available.  Conventional loans require at least a 620 median FICO score, but an FHA loan can go as low as a 580 median FICO score and even lower if you have a greater down payment.  USDA’s Rural Development loans typically require a 640 median FICO credit score, but are income and location sensitive.  A VA home loan traditionally has no minimum credit score, but a 580 median FICO credit score or greater would be most advantageous.  Let us personally help you with your credit questions as there is no bad or silly question.

That depends on the type of mortgage that you are applying.  VA and USDA home loans require no money down, but both loans have different qualifying criteria.  (For example, you must be or have been a member of the armed forces or reserves to be considered for a VA loan.)  A conventional loan can be obtained with as little as a 3% down payment and an FHA loan can be obtained with as little as a 3.5% down payment.  All loans programs have their own pluses and/or minuses.  Let us personally help you find the loan that best fits your needs.

A prequalification is a quick review of your financial picture, usually done without providing the lender with any documentation.  It does not include running a credit report or verification of any documentation.  It is a “best guess” of your likelihood to qualify for a home loan based on general discussion.

A preapproval requires the lender to collect and verify income and asset documentation, as well as obtaining your credit report.  Although it is not a commitment to lend, as an appraisal, title work, etc. most likely will be required, it shows that you’re serious about buying a home and that in all likelihood, you’ll be able to satisfy the offer that you’re intending to make on a home purchase.

We can provide either a preapproval or prequalification prior to your home search, but would recommend obtaining a prequalification to ensure all aspects of your financial situation have been explored. Let us personally help you before your home search to take out the guess work.

• Most recent pay statements (covering the last 30 days YTD earning)
• Most recent 2 months of bank statements (accounts from which you will obtain your down payment and/or closing costs).
• Last 2 years of W2 form(s)
• Most recent 2 years of complete tax returns, including all schedules

This is just a quick list to get started, but in general, this is where you should begin, depending on your current situation.  Granted, each applicant is unique and no two loan applicants are identical.  Let us personally help you and we can outline what you need to have available before the loan application.

Prioritizing needs and wants with regards to credit.  You don’t want to “shop” for new furniture before you close on your home loan.  Even a credit inquiry will come to the lenders attention, so even if you just opened a line of credit, but didn’t buy any furniture, it could jeopardize your approval.  Once you have committed to buying a home, don’t spend money foolishly, use your credit cards sparingly, don’t run out and buy a new car, and don’t provide anyone your information for any type of “pre” approval.  The lender sees everything in your credit world through the loan process, so live cautiously throughout the home buying process. Let us personally help you and please remember we work for you and are always available for any questions or concerns you may have in the home buying process.