How can I secure a home loan within one year?
Can anyone give me some advice?? I recently tried to purchase a home, and was denied because of inadequate credit history and income. I own my own business and have not shown a large profit because of write offs. I am now renting a home with a contract that I must purchase the home in one year. My income is about 25,000 and my credit score is around 645. I do not have any negative credit, but the only credit that I do have is small, new accounts. (all of which are in good standing). Can anyone offer advice on the steps that I can take to ensure a loan? Thanks!
Answers:
You need to see a Mortgage Broker rather than a traditional bank. They will have more options available for self-employed persons. One thing that is usually looked at is that you have been self-employed for 2 yrs. Verification usually will come from tax reports and/or letter from your CPA. Have small to none on the credit debt balances so you will not have any debt to income issues. Hopefully, having some credit will raise your credit score which will put you in a better position for different types of programs available.
As you get closer, say two months, to purchase the house, meet with a reputable Mortgage Broker to see what types of programs are available to you. If you do call around, DO NOT let them pull credit! This will ding your credit every time and could drop your score and drop you from some great programs. They will all tell you their best rate no matter what. If they can tell you ballpark based on what you tell them and tell you the factors that go into it, then at least they know what they are doing.
Good Luck.
To secure a loan, you must put up an equal amount in collateral or cash. If you do not have it, it is impossible to have a secured loan. You may want to pick up a second job. You can also check with another institution about a loan. Different banks or mortgage companies have different rules.
Definitely try a different Mortgage Company. When I bought my house 8 years ago, the first company I went to about laughed me out of the building. I didn't try again for 6 months, but second time I went to a different company and had no problem getting the loan. I'll even tell you the name of the company (Pioneer Bank out of Roswell, New Mexico). I would refer them to anyone. Now, don't know if they have branches where you are, but that's a different story.
Mortgage loans can be very challenging for the self employed since the investors average their taxable income over 24 months for qualifying purposes.
There are products specifically designed just for these purposes. They are called No Income Qualifier loans.
In order to secure the best rate, credit scores should exceed 680 and a minimum of a 20% down payment is necessary.
There are other products with milder qualification guidelines but they will have higher interest rates and fees.
Your credit scores will climb every month as long as you make your payments on time and i would imagine in a year you wil be at the credit score threshold. I would suggest you start accumulating funds towards a down payment in order to qualify for the most competitively priced programs available.
There are many types of loans such as stated income or no doc loans. Your best bet is to connect with a mortgage broker instead of a traditional banker. The problem with these types of loans are that they carry a higher interest rate because they do not verify your income and you are seen as a higher risk.
Most importantly keep increasing your credit scores. Good information on improving scores, http://www.choicefinance.net/improve_cre...
I can get you into what is called a No-Doc, which is a loan where none of your income amount is present on the loan application. We have thousands of programs which we have in order to help you purchase a new home. My name is Mike Bradley and i work with Bourdeau Financial. I can be reached at (866) 530-7300 x7316. I hope to hear from you and i hope i am given the oppourtunity to help you get into your new home.
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Answers:
You need to see a Mortgage Broker rather than a traditional bank. They will have more options available for self-employed persons. One thing that is usually looked at is that you have been self-employed for 2 yrs. Verification usually will come from tax reports and/or letter from your CPA. Have small to none on the credit debt balances so you will not have any debt to income issues. Hopefully, having some credit will raise your credit score which will put you in a better position for different types of programs available.
As you get closer, say two months, to purchase the house, meet with a reputable Mortgage Broker to see what types of programs are available to you. If you do call around, DO NOT let them pull credit! This will ding your credit every time and could drop your score and drop you from some great programs. They will all tell you their best rate no matter what. If they can tell you ballpark based on what you tell them and tell you the factors that go into it, then at least they know what they are doing.
Good Luck.
To secure a loan, you must put up an equal amount in collateral or cash. If you do not have it, it is impossible to have a secured loan. You may want to pick up a second job. You can also check with another institution about a loan. Different banks or mortgage companies have different rules.
Definitely try a different Mortgage Company. When I bought my house 8 years ago, the first company I went to about laughed me out of the building. I didn't try again for 6 months, but second time I went to a different company and had no problem getting the loan. I'll even tell you the name of the company (Pioneer Bank out of Roswell, New Mexico). I would refer them to anyone. Now, don't know if they have branches where you are, but that's a different story.
Mortgage loans can be very challenging for the self employed since the investors average their taxable income over 24 months for qualifying purposes.
There are products specifically designed just for these purposes. They are called No Income Qualifier loans.
In order to secure the best rate, credit scores should exceed 680 and a minimum of a 20% down payment is necessary.
There are other products with milder qualification guidelines but they will have higher interest rates and fees.
Your credit scores will climb every month as long as you make your payments on time and i would imagine in a year you wil be at the credit score threshold. I would suggest you start accumulating funds towards a down payment in order to qualify for the most competitively priced programs available.
There are many types of loans such as stated income or no doc loans. Your best bet is to connect with a mortgage broker instead of a traditional banker. The problem with these types of loans are that they carry a higher interest rate because they do not verify your income and you are seen as a higher risk.
Most importantly keep increasing your credit scores. Good information on improving scores, http://www.choicefinance.net/improve_cre...
I can get you into what is called a No-Doc, which is a loan where none of your income amount is present on the loan application. We have thousands of programs which we have in order to help you purchase a new home. My name is Mike Bradley and i work with Bourdeau Financial. I can be reached at (866) 530-7300 x7316. I hope to hear from you and i hope i am given the oppourtunity to help you get into your new home.
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