Do you have questions about being able to qualify for a mortgage?

Hello Everyone This is Brad Hammarlund with Exit Homevets Realty in Killeen TX. I work with people looking to sale their homes and also with people who are looking for homes for sale in Killeen TX, homes for sale in Copperas Cove TX, homes for sale in Harker Heights TX.

 I am asked all the time about what it takes to be able to obtain a mortgage. There have been a lot of changes to regulations the mortgage brokers have to follow and some people are finding it harder and harder to qualify for a loan. First you have to qualify for a loan, then depending on the loan the home will have to qualify as well. There are 3 main types of mortgages available VA, FHA, and Conventional.
For a VA loan you must have served and have VA eligibility these loans are backed by the Government and will have the lowest rate possible. It does not matter what mortgage company you go through the interest rate is set by the VA, and you are not required to have a down payment. Along with that they will require a credit score of 620 and a debt to income ratio below 50%. Then the house will also have to meet the standards for a VA loan. There are companies claiming they can get you approved at lower scores or higher DTI but don't fall for it. If they can actually get you to closing how much extra are they charging you.  So when choosing a mortgage company we have to look at and additional costs they might be charging you and how well they work with you.  I always recommend a local company.  This is a big investment and it is better to deal with someone on a personal level so if you have any questions you will have someone to sit down with so they can better explain things. There are a lot of companies from other areas willing to assist you but with them you speak with whoever answers the phone and all they know about you is what someone else has noted on your account.

For a FHA loan this is also a government back loan and you will have to qualify for it. They will  require a down payment normally of around 3.5% the interest rate will be a little higher that a VA loan but it will be less than a conventional loan. You will be required to carry mortgage insurance till you have 80% equity in your home. You will need a minimal credit score of 630 to qualify and they too will be looking at your debt to income ratio to make sure you can afford the payments. Once again the interest rates are set so recommend that you find a local company just like with a VA loan. Also, like the VA loan the house will have to qualify for the loan. The FHA appraiser are not as strict as the VA appraiser but they are looking out for both your and the banks best interest. They do not want you to purchase a home that has a bad foundation or any major problems.

For a Conventional loan it is not a government backed loan so they can give you a mortgage on a home that will not qualify for a government backed loan. They are also good for some one who for one reason or another does not qualify for a government backed loan, or you are a investor and you do not plan to occupy the home. They will require a down payment normally ranging 5% for a owner occupant up to 20% for a investor. They will require a higher credit score normally starting out at 640. These loans are good if you are purchasing a home that will require some repairs. I have clients all the time looking for homes that they can get at a low price and put some work into and get exactly what they want and save a little money. On a conventional loan you will also have mortgage insurance till you have 80% equity in your home. 

There are so many different mortgage companies out there that trying to find the right one for you can be extremely difficult. I work with all of them so if you get pre qualified before meeting with me that is fine and if not I am happy to assist you in finding the right company for you. I have also helped people that qualified with a company that a friend or family member recommended but after speaking with them I was able to let them know about a different company that would work better for them. Always remember you are not obligated to till to sign the closing documents if they are not giving you the service you deserve or if they are charging you more than they should you can always change companies.


Homes for sale in the Killeen  Fort Hood Area: Brad Hammarlund, Realtor, with Exit Homevets Realty in Killeen TX, Our main service area is Nolanville TX, Harker Heights TX, Killeen TX, Copperas Cove TX, Kempner TX, and Lampasas TX. At Exit Homevets Realty We are Real Estate Expert Advisers And Marketing Innovators. I am here to assist you with all of your real estate needs. Feel free to call or text anytime: (254) 291-0630