MORTGAGE: BASIC REQUIREMENTS & MISCONCEPTIONS

Author: Mohamed T Gulamali
Their are 3 chief components in getting a mortgage:

1. Income: Capability to repay the loan 
2. Assets: Ability to budget finances
3. Credit: Willingness to keep accounts in good standing

There are a lot of misconceptions about how easy it is to obtain a mortgage, the most common ones pertaining to the above will be addressed.   

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1: Down Payment

​Misconception: Most borrowers presume the minimum down payment required to buy a home is 20% of the purchase price. ​

Fact: in most cases, a 3.5% downpayment is an option. These funds can be from your own assets or even from a gift through a family member such as a parent or sibling as long as no repayment is necessary.

2: Credit Score

Misconception: Nearly half of all borrowers believe they need a credit score in the mid 700's to qualify, fortunately they’re wrong.

Fact: In most cases, a credit score of a 620 is more than adequate.

3: Income

Misconception: Renters tend to think a mortgage payment isn't manageable.

Fact: More often then not a mortgage payment is extremely reasonable and can be very close to how much you're already paying in rent & even less when you factor in the numerous benefits.  A simple calculation is that your Total Income a month should be a bit more than double your total min debts (from credit) plus Mortgage Payment. The best way to find out if you qualify is to simply call and get qualified.

​​Bottom Line If you want to find out if you qualify for a Mortgage just make a call and find out.

Free Info:

• Free E-Book: Mortgage Basics The Guidebook
• WHAT TO & NOT TO DO AFTER GETTING PRE-APPROVED 
• A PRE-APPROVAL IS YOUR FIRST STEP  
• MORTGAGE DOCUMENT CHECKLIST 
• RENTING VS. BUYING A HOME PROS & CONS 
• HOW TO BUY A HOME
• WHERE BUYERS FIND THEIR HOMES  
• 10 MORTGAGE & PROPERTY TAX DEDUCTIONS 
• CREDIT TIPS: HOW TO RAISE YOUR SCORE 
• 4 BENEFITS OF HOME OWNERSHIP 
• 5 REASONS TO USE A BUYER’S AGENT