Is a 3.5% low-down payment the standard for homebuyers in Belleville, New Jersey?

Is a 3.5% low-down payment the standard for homebuyers in Belleville, New Jersey?

When first-time home buyers are looking for 3.5% low-down payment conventional mortgage without PMI they offer have many options but aren’t sure where to look. A minimum of 20 percent down payment is not the standard anymore. New first-time homebuyer programs are available with as little as 3.5% down.  The cost of the mortgage insurance (MI) maybe paid by the bank depending on the borrower's credit score and location of the property there buying. Borrowers with lower credit scores may be better off with an FHA loan. The disadvantage with FHA loans is that the borrower cannot cancel the MI for an FHA loan. The only way to get out of it is by refinancing into a conventional loan.

Aside from the down payment, there are certain other factors that can contribute on your status as a strong borrower in the eyes of your lender. For example, having a decent credit score can help you get financing more quickly and this also increases your chances of getting a better interest rate.

Here are a few tips that can help you get eligible and help you shop for good low-down payment conventional mortgage without PMI:  

A Good Credit history -When applying for a home loan, the lender is looking for no bankruptcies, foreclosures, repossessions or late payments. 

Stable Employment - Lenders want to see two o years stable employment at the same job or the same type of job. If you are self-employed, banks will request a minimum of two years of professionally prepared tax statements.

Seasoned Savings - The lender will ask to see your seasoned savings when applying for a loan. Seasoned savings are important because they show the underwriter your ability to save money and your financial stability.

Low Debt to Income Ratios - Low credit card balances shows a responsible approach to paying your obligations. If you have high credit card balances and car payments, you might not qualify for a loan. The number of open credit accounts and high limits could go against you as well in qualifying for a home loan.

Rent Checks - If you are a renter, bankers will often request months of canceled rent checks to verify your "housing" payments. These checks will indicate how responsible you are paying your housing bills.

No Outstanding Lawsuits - This includes judgments and liens. Current law suits could kill your ability to receive a loan.

Dual Income Family - When purchasing a two-family income is an insurance policy to some degree that the mortgage payment will be paid in the event of job loss. Banks are looking for financial stability when approving home loans.

Broaden your Options:

Instead of looking at the big banks only, do adequate research and consider all the alternate options available. A neighborhood bank, for example, is a better choice than a reputed bank if you are low on down payment or are looking for more affordable rates.

Is a 3.5% low down payment the standards in Belleville New Jersey? by Tony Busanich a loan officer with TD Bank, a portfolio lender from Maine to Florida. You can trust TD Bank to deliver a superior mortgage experience. Whether you’re purchasing or refinancing, we provide straightforward, easy-to-understand products and advice, allowing you to make smart borrowing decisions that meet your needs today and tomorrow. My web site at www.tdbank.com/tonybusanich Please contact me at 732-306-2231 or by email at anthony.busanich@td.com .