Depending on the lender, the average minimum credit score is 640. Everyone’s circumstance varies and there are companies I have been able to work with who have provided lending for a score as low as 580. DON”Y COUNT YOURSELF OUT! The only way to know our true timeline is to take the first step and talk to a mortgage advisor. It is best practice is to obtain a pre-approval BEFORE looking at homes, it sets the proper expectations and knowing your numbers are key. I recommend using a local lender that specializes specifically in mortgages. If you need assistance finding a trusted lender, please let me know and I can provide you with local advisors that I have a great business relationship with. Should your credit not be where we’d like it to be, NO WORRIES, I can recommend a few specialists in credit repair as well.
What do I need to begin a Pre-Approval ?
I know I’m reiterating but a pre-approval is the absolute best first step to proceed with. You will know your numbers, loan limits, available programs & grants, and there is no cost to you for this very informative and necessary appointment. Please ask all questions, express any concerns, and follow the steps you are given. This will ensure you remain on the right track. To begin the pre-approval process, the lender is going to need:
- 2 years W-2 and/or 1099
- 1 Month of recent pay stubs
- Last 2 years Tax-Returns
- 2 Months of most recent Bank Statements
After you are pre-approved, it is crucial that you do not make any changes without first consulting with your mortgage advisor. This includes but is not limited to:
❏ Quitting or changing career paths
❏ No new financing, not even furniture or opening new credit cards
❏ Avoid cash deposits into your bank account (the lender will be sourcing all funds)
❏ Remain transparent; when a lender is sourcing funds, they follow the paper trail leading to the source of where the funds came from. Simple and clean = smooth approval process.
Finance and Money for Home Journey Process.
When we have the pre-approval from your advisor (the pre-approval is good for about 3 months), our next step is to begin your home search. When a home is found that you are interested in, the lender is able to run an estimated cost sheet with all applicable costs including your monthly mortgage payment. I can certainly provide an estimated closing cost sheet for you as well and will ensure we stay within the comfortable monthly payments that we would have discussed.
There are a few out-of-pocket costs that begin almost immediately after we have our offer signed and accepted.
Please contact me for more information!