One of the most common questions i have been asked recently is "HOW DO I KNOW IF I CAN GET A MORTGAGE GIVEN TODAY'S Real Estate MARKET?" The first thing any potential buyer needs to do when they start thinking they want to buy a home, is to contact a local and trusted mortage broker, bank or credit union. STAY AWAY from the internet lenders.
A good local loan officer will pre-qualify you at no cost. They will look at your credit score but more importantly your whole financial picture. This includes your credit report, current income, debt and employment history. They will let you know what programs you may quailify for and what the down payment and closing costs for each are so you can compare them.
WHAT DO I NEED TO GET PREQUAILIFIED?
You should get together your last 2 years tax returns, your last 2 pay stubs, last 3 months bank statements and a list of your income and expenses.
WHAT IF I CAN NOT GET PREAPPROVED NOW
If you can not quailify for a mortgage today, they will be able to tell you what you will need to do so you can get a mortgage in the future. There are no quick fixes, no secrets and no one you can pay to improve your situation, they are all scammers no matter what they promise and how much they are charging. You simply need to pay your bills on time, get your balances down below half of what your credit limits are and start saving money towards your down payment or closing costs.
Good luck with mortgage search and as always please feel to add any comments or questions on my blog you need answered. If you are in NH and would like to be prequailified at no costs, just send me an email.
Updated August 9, 2011
PLEASE ADD ANY TIPS OR SUGGESTIONS YOU MAY HAVE...
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American Home Shield - Dallas, TX
Great post Scott, thanks for sharing! I have buyers all the time that want to look at only owner financing because they have credit issues. I always ask them, "how do you know you won't qualify for a mortgage, did you speak with a lender already?" Every time, they say "No." It just blows my mind!!
Aug 09, 2011 06:46 AM
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents
Most of my calls are the same way, i do prefer though they have spoken to no one rather than bringing in a pre quailification from an online source i never heard of before that usually turns out to be worth less than the cost of ink to print it. Thanks for your comment
Aug 09, 2011 07:08 AM
Bank of Oregon a division of Willamette Valley Bank - Medford, OR
Valley Mortgage Grou, Conventional, FHA, VA, mortgages
Hi Scott! Good information! As a lender, I oftentime see folks who are looking at potential "payment shock" with regard to their current outgo of rent, in comparison to a new mortgage payment. They say "oh, I'm ok spending another $500 per month". REALLY? I often ask myself as they have little to know history of savings. I suggest to them that "If you are prepared for an increase in your housing expense, then take that monthly difference and start socking it away in a savings account". They will show an underwriter they have the ability to save and that an increase in a monthly housing expense is something they are prepared for. Continued success to you. ~Karen
Aug 09, 2011 11:50 AM
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents
Karen that is a great formula for savings, it is great to have a loan officer around that much patience to assist buyers who dont quite quailify yet, I wish you were in NH. Thank you for the comment
Aug 09, 2011 11:57 AM
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862
We'll get approved when we find something we like. You are just trying to lock us in to something, we just want to see the house! Fine, I'll call someone who will show the house to me.
Aug 10, 2011 02:09 AM
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents
Than my answer would be if you find a house you like, you may not be able to make an offer becuase an offer requires a prequailification letter in order to present it, while you are waiting for it, someone else may come and scoop up your dream home. Most prequailifications can be done right over the phone.
Aug 10, 2011 02:39 AM
Carol Babington Associates - Las Cruces, NM
CRB, CRS, CIPS
I like your position that if you don't qualify today; you need to work on getting qualified. I believe buyers appreciate knowing that they aren't locked into renting forever. Good information.
Oct 11, 2011 03:07 AM
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents
Carol thanks for noticing, it is important to find out why a buyer can not quailify now and outline what they can do to get quailified. By working with them they are a future customer and the making and are usually very thankful someone took the time and patience to work with them. I enjoy seeing it through from start to finish
Oct 11, 2011 03:15 AM
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Scott Godzyk
One of the Manchester NH's area Leading Agents
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Scott Godzyk is the Owner/Broker of The Godzyk Real Estate Services located in Manchester NH. With 29 years of Real Estate experience Scott specializes in Listing and Selling Bank Owned Homes, Short Sales, Residential Properties, Condominiums, New Construction and Investment Properties.
Scott services the counties of Hillsborough, Merrimack, Rockingham and Belknap. To contact Scott Godzyk please call 603-661-2121 or email sctprop@aol.com. his website is www.ScottSellsNH.com.
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