My New Blog

Amanda,

 There is no subprime lending anymore.  There if no loan program available for scores under 620 anymore.  

 You see, you need 4 things to get a loan.  Our underwriters evaluate all of these at the same time and all areas must be satisfactory to get loan approval.

 1.  Income, not less than $2000 per month, (thatwolonly wotk is you had Zero debt).

 2.  Debt ratio should be less than 41%.  For example, car payments + credit card monthly debt (let's say that's $700), plus estimated monthly mortgage, (let's say that's $800), then you would need an income of at least $3700 to qualify.  (1500 / 3700 = 41%).

 3.  2 of the 3 credit bureaus must be 620+, but most lenders have went to 640 or 660, even 680.

 4.  Underwriters also look at the credit history and the amount of reserves that you have in savings, retirement funds, and soforth.

 It's possible to get a loan through us with scores down to 580.  We are brokers and can send your loan application to the underwriters of any of dozens of lenders.  But that can be very difficult and there are more lender costs and fees.  Also, we would require a written Buyer's Agency agreement with a $500 fee when your scores are so low to start with.  You would also be required to have 3 - 6 month's payments in reserve to show the lender that you are a good credit risk, despite your lower credit scores.

So, Amanda, the best plan is to boost your credit scores to North of 620.   You can go on our mortgage web site at www.Texasmc.com and complete the Loan Application at that site.  When we get the application, then we can tell you specifically what loan you may qualify for, and specifically what must be done to boost your credit scores. 

CREDIT REPAIR IS NOT FOR AMATURES!

We hear this question all the time.  Since we can't do a loan for you unless your credit score is acceptable to our underwriters, we have figured out how to raise credit scores significantly in as little as 14 days.  We want to do your loan.  But we need your help to do it.

Call us at (254) 742-1466, or send us an email to robin@texasmc.com for an appointment to review your credit. Then we'll both know exactly what can be done to raise your credit scores.

Don't waste your time and money with those "credit repair" companies.  They are mostly interested in getting your money one way or another.  It is in their best interests to drag the credit repair process out as long as posssible so that they can continue to charge you monthly fees for all their "hard work" and knowledge and contacts with attorneys and so forth.  If they truly knew what they were doing, then they would be mortgage brokers and would actually be doing your loan. That's what you really want, isn't it?

Should you talk to a mortgage professional before house hunting?

Absolutely! Even if you haven't so much as picked out houses to visit yet, it's important to see your mortgage professional first. Why? What can we do for you if you haven't negotiated a price, and don't know how much you want to borrow?

When we pre-qualify you, we help you determine how much of a monthly mortgage payment you can afford, and how much we can loan you. We do this by considering your income and debts, your employment and residence situations, your available funds for down payment and required reserves, and some other things. It's short and to the point, and we keep the paperwork to a minimum!

Once you qualify, we give you what's called a Pre-Qualification Letter (your real estate agent might call it a "pre-qual"), which says that we are working with you to find the best loan to meet your needs and that we're confident you'll qualify for a loan for a certain amount.

When you find a house that catches your eye, and you decide to make an offer, being pre-qualified for a mortgage will do a couple of things. First, it lets you know how much you can offer. Your real estate agent will help you decide on an appropriate offer, but being pre-qualified gives you the confidence to know you can follow through.

More importantly, to a home seller, your being pre-qualified is like you walked into their house with a suitcase full of cash to make the deal! They won't have to wonder if they're wasting their time because you'll never qualify for a mortgage to finance the amount you're offering for the home. You have the clout of a buyer ready to make the deal right now!

You can always use the calculators available on our site to get an idea of how much mortgage you can afford -- but it's important to meet with us. For one thing, you'll need a Pre-Qualification Letter! For another thing, we may be able to find a different mortgage program that fits your needs better.

 Sunday, June 07, 2009 9:23:40 PM

Yes, it's true:  Buy a home now and you'll get a $8000 tax credit from the US Government.  What is a First Time Home Buyer?  Simply any home buyer who has not owned a home in the last 3 years. 

Robin