What is the minimum requirement for a mortgage? 0
I was asked what the bare minimum requirements are to be considered for a mortgage. I can’t speak for all lenders but the answer that I can give is:
1) A credit score no lower then 620.
2) A debt ratio (defined as your gross monthly income divided by your minimum monthly housing and consumer debt payments like credit cards, car loans, house payment,etc.) no higher then 49.9%.
3 ) No bankruptcy for the last 2 years and clean credit since a bankruptcy if you have had one.
4) No Foreclosures in the last 3 years (defined as the date that the foreclosure was registered with the county, not when the homeowner has to leave.)
5) At least 3 lines of credit with a 12 month history showing on time payments. (If you have less then 3 trade lines, or accounts, that have at least a 12 month history, you can use Alternative Credit, such as your energy bill or your car insurance, your cell phone payment, or any other account that you can document a 12 month, on-time, payment history even if it is not reported to a credit bureau).
Now this does not guarantee a loan. It just means that you can be considered for one. Other restrictions can and do sometimes come in to play and these requirements can change as well but if you can look at this list and you meet all of these minimums and you are looking to buy a house, you can at least be considered for a loan. All you would have to do is do a standard mortgage loan application and provide the lender with some basic documentation (pay stubs, bank statements, W2′s, and tax returns of at least the last 2 years) to back up what you said in your loan application.
If I can help in any way or if you have any questions, please feel free to contact me. Thank you, Mark Afman
Need Some Good News? 0
Are you a “glass is half full” or “glass is half empty” kind of person? Growing up, I was very cynical about life and even into my adult years I was a pretty pessimistic guy. When something bad would happen I would justify it by thinking that it was going to happen anyway so why should I think that life would be any better. Sad huh? I was one of those people that thought that life owed me somehting and I could not figure out why life was not paying up. Then I realized that life did not pay back something that it did not owe. It took me awhile but I came to realize that life is what I could make of it. Not the other way around. I still have difficult times, as I’m sure you do. But it just makes more sense to me to know that I can work my way out of it using whatever brains and talents I might have.
So what does this have to do with anything? It occured to me that during this time when the economy is percieved to be in pretty rough shape, I thought I would share a few items that could give us all a little boost. In the Real Estate world, the more knowledge you have, the better your chances are of doing well so here are a few “glass is half full” points. 1) The Denver Business Journal reports that unemployment is down to 8.1% in Colorado. Still too high but it’s better then the national average and the state added 8800 new jobs. 2) Colorado Small Business jobs are up .5%. OK, not a huge number but it’s a step in the right direction. 3) Forbes rates Colorado the 5th best state for business. Not bad, 5th out of 50. 4) The Boulder County Business Report is reporting that foreclosures are down in the Denver Metro Area. Down is better then up. 5) CNN reports that existing homes sales were up in October and since the Wall Street Journal reported that buying a home is less expensive then renting, right now, Why not get the word out.
Let the people in your database or sphere of infulence know these things. If they are anything like I used to be, they could use some good news right about now.
Let me know if you have any thoughts or comments.
I Have A Partner 0
I would like to announce that I now have a partner working with me. His name is Joel Houwer and he is a fully Licensed Loan Officer in the state of Colorado. Joel and I will be working together to bring an even higher level of customer service to you or your referred clients. He provides a tremendous attention to detail and customer service. He is trained in all of the loan products that Universal Lending provides (FHA, VA, Conventional, USDA) and he is backed by the 30 years of experience from Universal Lending and the 9 years of experience that I have. Joel will be working to develop some new marketing strategies that we will be able to share with our referral partners and will bring a, shall we say, more youthfull perspective to this industry. As always, we will specialize in first time home buyers and their unique needs. We will communicate the seemingly complex world of home loans in terms that make it easy to understand. We can also help with your move up buyers, loans for 2nd homes, refinance loans, investor property loans, and the FHA 203K rehab loan.
So please welcome Joel he joins me to provide you and/or your referred clients with the highest level of service and help in this always changing world of home mortgages. Feel free to contact either Joel or myself, using the contact information below, if you have any questions or would like to start the pre-approval process for a yourself or your clients.