How much can I afford for a house?

1) Apply
Complete an online mortgage application from a licensed lender. That Simple!
Be ready to submit your financial info such as W2, 1099, or other income /debt.

2) Shop Loan Products
Applying an online mortgage application will effect your credit score, HOWEVER, you can continue to fill out online mortgage applications for a time period (30 - 60 days) from first application WITHOUT effecting your credit score additionally. This allows home buyers to shop mortgage lenders for the best rates.

3) Credit Score Vs Interest Rates
Most mortgages require a minimum credit score to apply for a loan. Typically the lowest credit score to apply for a loan is 580. Most home loan officers will grant better interest rates with a higher credit score.

4) Down Payments

  • 0% - 5%: Lower down payments have more strict appraisals. House has to be in move-in ready condition.
  • 20%: Benchmark to remove PMI from home mortgage, lower monthly payments
  • 20% +: Tyically investment properties will require 20% or more as down payment. This means the buyer will not be moving into the house and living there for 1 full year.

5) Origination Fee
This is the charge from the bank for lending the money and starting the home loan. Typically it is discussed as points, but just means % of loan.

6) Types of Loan Products

  • FHA | VA | USDA Lower down payment loans that require average property condition.
  • Conventional Range from low down payments to high down payments.
  • Rehab | Mobile | Lots Speicific loans for certain properties are necessary such as rehab loans.