Are you ready to make your first home-buying investment in the sunshine state? Before you go house hunting, it is important to prepare and streamline your finances to avoid a difficulties on the financial front.
It is important to get a pre-approval on your mortgage loan before arriving for your very first open house session. Naturally, this will help pave the way towards owning your dream home. When it comes to getting qualified for a home loan in Florida, your credit scores have an instrumental role to play.
In this article, we will walk you through some industry insider secrets from a loan originator to help you qualify for a home loan in the sunshine state.
Here, take a look:
What’s your Credit Score?
Within a few minutes, you can obtain your credit report and order credit scores, but alarmingly, a majority of the home buyers fail to examine their credit history and scores before submitting their application for a home loan.
It is important to ensure that your credit scores are healthy and balanced to qualify for a home loan. You see, credit scores are a significant influence on home loan and mortgage approvals. A majority of the lenders in Florida demand a minimum credit score of 680, but our minimum requirement is a 580 credit score. At 580, we do require a down payment.
Missed payments, late payments, and other credit information that undermines your credit scores and reputation will also have an impact on the mortgage approvals. So, prepare ahead of time by reducing your debts, paying your bills in a timely fashion, and clearing up your credit history by eliminating all errors that reduce your credit score.
Lenders like to see a 2-year history of employment in the same field. All too often, I see people who switch from one company to another but remain in the same field and think they cannot purchase a home. In certain cases, we can even go down to one year at the same job.
Additionally, don’t think that if you are a student or a recent graduate you cannot buy a home. For example, if you spent several years to graduate with a degree in library sciences and then took a job as a librarian, that would count as 2 years in the same field.
Saving for a Down Payment
The down payment requirements for a mortgage loan application are subject to each individual loan type, so don’t hesitate to call or text me at any time if you have questions about various down payment requirements. There are programs that we are certified in to help buyers purchase a home with zero money down. I have done loans where I was able to help my clients get money BACK at closing rather than paying anything at the closing table. Requirements to save a huge down payment is a thing of the past.
It is important to keep in mind, the less money that is invested as a down payment creates a bigger loan amount, which means the monthly payments tend to be higher. However, that is the trade-off for purchasing the house with less out of pocket at closing.