Buying a home in Fresno? Looking for a home loan to finance the purchase? With so many loan options available, it can be overwhelming to decide which one is best for you. Whether you’re a first-time homebuyer or looking to refinance, getting a home loan can be a complicated and time-consuming process. That’s why it’s essential to understand the different types of home loan programs available and the factors that affect your eligibility.
On this occasion, Linda Peltz realtor Fresno talked to Marshawn G from the MKG Enterprises Corp. This company offers diverse financial products, including mortgage loans, one-time construction loans and home and equity lines of credit. If you’re planning on applying for a home loan, then you’ve landed on the right page. In a moment we’ll be revealing our tips for getting a home loan program so you can nail it easily. We’ll also be covering the necessary preparations prior to applying for a home loan, so stay tuned on the video below.
Home Loan Program Requirements
Home loan program requirements vary depending on the loan program, lender, and location. For instance, in California, where the housing market is highly competitive, borrowers may need to meet more stringent eligibility criteria than in other states.
Some of the most common requirements for home loan programs include a good credit score, a steady income, and proof of employment. Lenders will typically look at an applicant’s credit score to determine their creditworthiness and ability to repay the loan. A higher credit score can increase the chances of loan approval and secure a lower interest rate.
Home loan program requirements vary according to several factors, such as:
- Our credit score or FICO score
- How much down payment to be covered (have you heard of Down Payment Assistance Fresno?)
- How much we earn as income every month
- Our Debt-to-Income Ratio
Based on the above pointers, here are our tips for getting a home loan program:
Tips for Getting a Home Loan Program
- Prepare the Necessary Paperwork
Generally, a loan applicant will need to present these documents for their loan application:
- W-2 forms or tax returns
- Valid identification issued by the government.
Note that each lender may have their own sets of home loan program requirements. It’s advisable to check with your lender before proceeding to submit your loan application. Ensuring that you have the right documents boosts your chance of securing the home loan and expedites the whole process.
- Improve Your Credit Score if Needed
Paying off credit card bills on time ensures that your credit score remains high. Another way to obtain a high credit score is by using less than 30% of your credit card limit. You can go lower than 10% if possible, the lower the better. This brings us to another method, which is by requesting for higher credit limits.
When the credit limit increases while your usage remains the same, the percentage goes even lower. This, in turn, increases your credit score and your chance to be granted a loan. If you need funds for your new home’s down payment, consider opting for Down Payment Assistance Fresno instead.
- Get Yourself Pre-Approved for a Home Loan
Another one of our tips for getting a home loan program is by obtaining a pre-approval as soon as possible. With MKG Enterprises Corp, getting a preapproval and loan estimates typically takes only 48 hours. In case you’re unfamiliar with pre-approval: its purpose is to determine the amount of funds you can borrow. Lenders investigate your income, assets and credit score; which is why having a high credit score is crucial as mentioned above.
Once you’re pre-approved and settled on a home to buy, the loan application shifts to the step of obtaining approval. If you meet all the home loan program requirements, then you’ll likely get approved within the stipulated time frame. However, keep in mind that you might be denied an approval if you suddenly change jobs. Any mistake that results in the decrease of your credit score can also impact your chances of getting approved.
One thing to note about pre-approvals is that they have only 60 to 90 days of validity. Within this time period, you’ll need to decide on a home to buy. Hesitating to buy the home due to the size of the down payment? Down Payment Assistance Fresno is here to help.
Lots of other tips for getting a home loan program may exist, but the 3 listed above are the fundamentals you’ll need. Need guidance for your home loan application? Talk to us today!
MKG Enterprises Corp.
4021 N Fresno Street Suite 107, Fresno, CA 93726
Linda Peltz, eXp Realty | DRE 01997670