Novus Realty is a one stop shop for all your Real Estate needs. Our team is always focused on keeping up to date with the latest trends along with laws, policies and procedures that are changing on a daily basis. Keeping ourselves relevant is a major priority for our company. Today, we had the pleasure of meeting with Alex Castillo our in house Mortgage Broker. Alex offered a quick training for our Realtors on the basics of Mortgage Lending and the minimum Mortgage requirements for our clients. Here is a summary of the things that Mortgage Brokers are looking for in order to qualify a potential borrower:
1. Down payment – always related to your LTV or loan-to-value-ratio, the more down payment means less money that you will be financing and paying interest over time.
2. Affordability – determines your total budget or maximum purchase price.
3. Pre-qualification – does not require your social security and allows you to compare preliminary loan details before running a credit check.
3. Pre-approval – lender will run your credit and examine your finances, this will be the most accurate measure before shopping for a property.
4. Debt-to-income-ratio – total monthly debt and usually it should be no more than 36 percent of your gross monthly income.
5. Credit Score-lenders are always looking for credit scores over 700 to offer the best mortgage rates even though you may still get approved if you fall on the lower end but may not qualify for the best rates available at that point in time.
6. Employment History – a job history can be a great indicative of your ability to repay your mortgage. Borrowers are usually required to have at least two years working in the same field to be considered. As a self-employed individual, you may be asked to provide bank statement information for consideration.
As stated in the beginning, procedures and policies are constantly changing so it is always a good idea to keep an open mind and open communication with all the people involved in your transaction. At Novus Realty, we strive ourselves with all the knowledge and information necessary to make it a smooth and positive transition into purchasing your brand new home!