2022 may turn out to be the most competitive real estate market in years. That’s the bad news. The good news is that there are a few things that you can do to help guarantee you win the day! When it comes to a mortgage approval – there are three primary factors considered in the underwriting decision (these are not the only factors – but if you have these three covered you will be in great shape. The three factors are
Credit – the minimum credit score requirement varies depending on loan type. As long as you have the required credit score – that is a good place to start and you are in great shape. If you do not currently have the minimum credit score for your desired mortgage options – the sooner we start working on building you credit the better.
Debt-to-Income Ratio – if you are employed and receive a W2. Your debt-to-income ratio is calculated based on your gross monthly income. If you are self-employed tax returns may be required to calculate your ratio.
Funds-to-Close – the lender will need to verify your funds to close. Generally the lender wants to see funds in your account for a minimum of 60 days. The great news is that you are allowed to get Gift Funds from a family member. Gift funds can be used for down payment and/or closing costs
A pre=approval is the best way to review each of these and confirm your qualifications. Once your pre-approval is completed you will receive a letter confirming your qualification. Your realtor will want a copy of your pre-approval letter before showing properties. The seller will also require a pre-approval letter before accepting your offer.
Take the first step toward purchasing your dream now. Get pre-approved now – https://gregrutolo.zipforhome.com/LoanApplication/Contact?IsStart=
