Credit Application Process:
Advices to save you time and money

Your home buying credit application gets the ball rolling!

Here is some professional info to apply for home loan ...successfully. These are some of the best tips that I have accumulated in my years working with home buyers.

Following these advices can save you time and money.

As I discuss elsewhere in this site unless you have cash and/or assets that can be converted to cash rather quickly, the sellers will not even consider you offer.

You will need to show proof of funds that can be in the form of a letter from your bank and/or investment firm stating that you indeed have at least the dollar amount equivalent of the purchase price in liquid and/or other assets that can be timely converted into cash and you will be able to withdraw that dollar amount by or before the closing date.

On the other hand, if you will need to finance you home purchase, you will need a pre-qualification letter from a reputable home mortgage lender that you meet current requisites to assume the financing obligations to buy a home.

I almost can guarantee you that nowadays, giving the turmoil in the real estate market, no listing agent will take an offer to his/her seller without seeing at least one of the above.

The Amount You Qualify For

This is the # one thing that the lender will establish when they look at your credit records, It will depend on numerous factors:

• Your current employment status
• How long you have been in the current job
• If you credit is “clean”
• If there is any derogatory entry(ies) and if you have satisfactory explanation for each of them
  
• Your mid credit scores must be at least 620
• Proof of funds for the required down payment

To get additional scoop for your home buying credit application please be sure to visit my page “CreditScores”

Documents You Will Need

To get your application started, here are the documents you will need:

1. Most recent 30 days pay-stub showing year to date earnings
2. Most recent 60 days statements for all asset accounts [all pages]
3. Most recent two years W2 an complete tax return
   
4. Letter of explanation regarding any derogatory credit
   
5. If VA loan: DD214 - certificate of eligibility
6. Legible photo id government issued
   
7. Copy of signed social security card
   
   
   If you are a 1099 Form self-employed filler – like me – there will be additional requirements, your home loan officer will advise you.
   

TIP: Each time that you apply for financing like credit card, store credit or home loan, your credit scores will take a hit (come down a little) so it is wise hold applying for any kind of credit – even gas card – when you are gearing up to your home buying credit application process.

TIP: However, the credit bureaus grew to be intelligent enough that accept that one will need the home buying credit application well scrutinized for better terms and rates. You have a window of a couple of weeks to a month shop around and they will count it like just one entry.

So it pays to shop around: Sometimes a ¼ of percentage makes a huge difference given the life of the loan – 15 to 30 years. It is thousands of dollars in savings that you will appreciate.

TIP: By the way this is also true to other major purchases like a car, when in fact you are shopping to purchase just one!

An important note – if you are buying “all cash” which means you will not finance any portion of your purchase price, credit scores are not an issue.

Other than that, your home buying credit application does hold the key for you new home!

JC Fagundes, Head Broker
EQUAL SERVICE TO ALL.
Residential. Commercial. Investments.
Ph: 404 801 4141

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