Why It’s Smart To Place Your Trust In Ray Antonelli
I have been originating all types of mortgage loans for over 17 years. First Time Homebuyers, Debt Consolidation, FHA, Refinancing, Investment Property, Rehab loans, and Reverse Mortgages for Seniors to name a few. During that time I have analyzed thousands of credit reports and, because credit is so important in any real estate transaction, developed a certain expertise in being able to teach you how to get good credit and keep good credit. Further, I help you navigate all the details of the loan process so you will be an informed consumer every step of the way. Let me help realize your dream of homeownership. Call today 216 337 7520.
3 Secrets to Qualify for a Mortgage Loan
These 3 secrets apply to most loans but especially to mortgages.
1: Good Payment History
Lenders will look closely at your credit scores and how well you are paying your monthly obligations that show up on your credit reports. Generally speaking a minimum score of 640 across all three consumer reporting agencies (abbreviated CRA’s) is required to qualify for a mortgage. There are programs out there that go down to a 580 score in some special circumstances. But don’t hold your breath waiting for loan approval as the lenders will make you jump thru many hoops before that happens. If you have scores that are close we can work with you to get the scores where they need to be. I can refer you to a reliable, low cost, program that will, most of the time, boost your scores to where they need to be in a few months. Knowledge is power. Know your scores BEFORE you apply for any loan. If you find errors that need to be addressed it may take up to 90 days for corrections to show up. So start early enough that when the time comes to start looking for a home you will have confidence that your loan officer can issue a preapproval letter to your Realtor when you put in an offer.
Secret 2: Low Debt Ratio
Your debt ratio is a percentage of your gross monthly income prior to deductions for withholding, social security, etc… Your debt ratio includes car payments, credit card payments, mortgage payments and anything else that normally shows up on your credit reports. Student loans or installment loans for example, also show up on your reports. As a rule of thumb, if you keep your total monthly payments at or below 45% of your gross monthly income you will be approved, assuming your scores are high enough and you meet the down payment requirements. As an example, if you gross $10,000 monthly and the combined total of your monthly car payments, credit card payments, and mortgage payments is at or below $4,500, then you should quality for a mortgage loan. Of course there are exceptions to every rule. I have gotten loan approval with debt ratios as high as 55% in certain circumstances.
Secret 3: Loan to Value Ratio (LTV)
If the purchase price or appraised value is $100K and the loan amount is $80K then the loan to value is 80%. Those of us in the business abbreviate loan to value as LTV. 80% LTV is the gold standard in mortgage loans. Before about 25 years ago that was almost the only kind of mortgage loan that was made. You (or your parents) went to the bank with 20% in cash, the bank made an 80% LTV loan and they were very happy because it’s very rare for them to lose money even if the loan goes south when there is 20% down on the part of the buyer. Today we regularly make loans all the way up to 96.5% LTV when there is a need due to lack of down payment funds. This means that you would only need $3.5K cash as a down payment on a $100K purchase for example. Let my experienced team assist you with all types of mortgage loans. First Time Homebuyers, Debt Consolidation, FHA, Refinancing, Investment Property, and Rehab loans, to name a few.
We can help you purchase the home of your dreams. Call Ray (216) 337-7520 today.
I am a Senior Loan Officer whom have been named one of the Top 100 Real Estate Mortgage Pros on LinkedIn.