Tip #1 ~ Employment ~ You need to be on your job at least 2 years OR in the same field for 2 consecutive years with no gap in employment OR be a recent college graduate with an offer letter in hand. *Self-Employed, you need the last 2 consecutive years of FULL tax returns showing sufficient income. Call me. 815-370-9358 Buying a house
Tip #2- I filed bankruptcy- Ok, take a deep breath. . It’s cool. In order for you to buy a house, you need to wait 2 years from the discharge date. BUT, during those 2 years you must re-build your credit and not have any derogatory credit since the filing. But- if you haven’t filed- but think you need to… wait! There maybe a better & cheaper solution. Call me… 815-370-9358 Buying a house
Tip#3~ Credit Score~ Based on my experience.. you need at least a 640 credit score. This score will give you access to mostly all programs and put you in position for the least amount of money down and the best interest rate. There are programs out there that claim they can get you approved at a 580 credit score, however the rate is high-more money down – and stricter guidelines. Most people can’t get approved due to those stricter guidelines. Inbox me on how I can help you get to a 640.. Guaranteed! Buying a house
Tip #4~ if you are renting and paying CASH…. STOP! That’s crazy! You have no official record that you paid rent. Even if you stay with family and pay rent… it shows positive rental history. Pay with a check or if your landlord doesn’t take checks… Pay with a money order. The lender will need a record of at least 12 months of on time payments Buying a house
Tip #5~ Down Payment ~ You will need at least 3.5 % for a downpayment for an FHA loan. Example… If you are buying a house for 150,000 you need to have $5,250. Don’t forget about closing cost! Add another 3%. More than likely you will not need to bring all this money to the closing, but you have to show it in the bank. If you are getting your down-payment from a family member as a gift- you will need a gift letter and the donor and possibly their bank statements to show where the funds came from.
photo cred: Naomi Hebert