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

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

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!

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