qualify

[Mortgage] How to Qualify (HOME LOANS) [MORTGAGE] (FHA) Conventional [FHA Loan]



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hey this is Chris the mortgage pro today I'm gonna teach you how to qualify for a

mortgage well there's a lot of things obviously that a lender has to look at

so let's go through each and every one of them the first one that stops

everybody and they get all nervous is credit now some people have outstanding

credit and some people hey they have challenges maybe they had late pays you

know bad things happen to good people all the time and sometimes that's the

reason for a low credit score sometimes it's you don't even have enough credit

so let me give you a way to think about how the lender will look at your credit

they say to themselves hey if this guy can't pay a $25 a month credit card are

we gonna lend them three hundred thousand dollars it's a small way of

thinking don't think fold up think bigger think I'm not gonna go out to

dinner I'm gonna pay my bills first you pay your bills this is what my mama

taught me first you pay your bills you pay the mortgage you pay all your other

debts then you figure out a wheat and steak over eaten beans it's just a way

to think if you think like that in a short period of time your credits gonna

be good enough to fire your landlord okay next thing lender needs to know

income well do you have job stability how long you been on your job look you

could get a job and get approved the next day you really can but if you

change jobs every three months well that job stability isn't there they want to

see some kind of stability do they want to see income of course how do they know

that you can afford to make that payment they need to know that you have the

income they expect it to continue for usually three years is what they're

looking for obviously you can get fire you can get laid off things could change

but they have a reasonable expectation of three years going forward that the

income will continue so they want to see that they'd love to see a history the

stronger the history the stronger the case you could fire your landlord

okay next thing they want to see downpayment they call this skin in the

game if you put up your own money that you worked hard for for a down payment

they say hey they got some skin in the game they're serious they're committed

now if you put a zero down program and we have these zero down programs they

work great for some people but it makes a little bit tougher for the underwriter

to say yeah they're worth taking a shot on so we want to see a down payment

sometimes people put $200,000 on a down on a four hundred thousand dollar house

do they have some skin in the game it makes the underwriters decision way

easier doesn't it and if a person can't put a thousand or two thousand dollars

down it makes the underwriter a little nervous so take advantage of the

programs save some money but be sure that you're ready to show you're

committed to this transaction okay something else

obviously the underwriter wants to see we need an appraisal of the property we

have to know the lender needs to know that if it's a four hundred thousand

dollar loan that the house isn't worth three hundred and fifty thousand dollars

so the collateral is the last piece of the puzzle that they have to make sure

it's worth it but that also protects you as the borrower why because if you

commit to buying a house for $400,000 and it appraises at three hundred and

eighty thousand is that something you really want to do so this is designed to

protect you and protect the lender that's a big deal okay not only do they

want to see your credit but on the credit report it's a list of debts what

do you mean well you have your car payment on there you have your credit

cards you may have child support alimony we have to look at all the debts if you

make $5,000 a month but you have $2,000 a month in debt doesn't leave a whole

lot for a house payment so we have to look at all the numbers versus your

income so that's the last thing that they're gonna want to see how much is

going out already because you're gonna add on this new house payment okay

so those are the five things that a lender needs to

see they want to see your credit are you responsible do you pay your bills on

time or do you make excuses for not paying them do you have crazy debt

that's out of control that you can't handle when you add on house payment

do you have income and job stability how's that going

do you have five new jobs or one new job it doesn't really matter if you have two

or three jobs but if you change your job on a regular basis not gonna work what

else they want to see how much money you've saved what's in your 401k what's

in your IRA what is in your bank do you save money do you have a financial

responsibility that you are showing you are a responsible borrower those are the

key things they want to see and obviously the appraisal they want to

make sure the collateral is solid it protects the lender and protects you so

this is Chris Trapani call me I'll help you figure it out and together we're

going to fire your landlord!