Q. How important is job stability
when applying for a loan?
This is important. As a rule of thumb, the lender looks for
a minimum two-year work history.
Q. Should I get pre-qualified or pre-approved before I begin
house hunting?
Absolutely! It is important to know how much you can afford
before you fall in love with a home.
Q. How much should I put down on a house?
This varies based on your personal situation and how comfortable
you are with your payments. It usually varies between zero and
20%.
Q. When does it make sense to refinance?
The rule of thumb is "if the new rate is one point lower than
your current rate." There are exceptions though. For example,
one could go from a 30-year fixed to a 20-year fixed and reduce
the term and finance charges dramatically. It is important to
evaluate the closing costs associated with refinancing and how
long you plan to remain in your home.
Q. What if I'm self-employed or don't have a two-year job history?
Some programs are available as stated income and no income,
no asset verification. Otherwise, lenders usually like to see
two years of taxes.
Q. What's the difference between pre-approved and approved?
Pre-approved means that the buyer has been submitted to an
automated underwriting system such as Freddie Mac or Fannie
Mae and has received an accept rating. Approved means that a
deal has been submitted to a specific lender and all of the
terms have been met. The loan is then ready for closing.
Q. What do I do if I have credit problems, or no credit history?
Sometimes bad things happen to good people. Credit problems
do not prohibit buyers from purchasing a home. There are programs
designed for buyers with credit problems. These programs allow
buyers to purchase a home, receive tax deductions and rebuild
their credit.
Q. Can I ever put zero down?
Definitely! There are zero-down programs that lenders do provide.
|
