How Do I Get A Texas Mortgage On My House?

Important Things To Consider When Applying For A Home Loan In Texas

If you have tried to obtain a mortgage before, you know how exhausting it can be. Before lenders decide to give you a mortgage, you will have to submit conventional loan requirements. You have to prove that you are creditworthy, and this step has a lot of procedures. It is true, sometimes you may end up getting frustrated with all the steps that you have to go through. Since the market crash in 2007, the mortgage applications and reviews got a lot harder. 

There are rigorous and extensive meaning that even something small may cause the lender to cancel your name from the list of homebuyers that need a mortgage. This means own thing: You have to prepare yourself before you walk into the bank to ask for a mortgage. Without prior preparation, you may end up getting more frustrated and maybe give up in the process. You will need to have your documentation ready as well as your income statements. If possible, have some collateral. 

This will increase the chances of you getting the mortgage. Below are more tips to help you get a mortgage for your house.

Credit Score

Corpus Christi texas classic home bought with assistance paymentsHow can I get approved for a mortgage with bad credit? This is a rule of thumb. If you have a poor credit score, there is no way that you will qualify for a mortgage. That is almost impossible. Banks and other financial institutions will only be willing to give you the house loan if they feel comfortable that you will be able to repay the loan. What better way to determine your ability to pay than checking your credit score? 

The secret is always ensuring that you have an excellent credit score. It takes very few minutes to pull your credit report. After you pull your credit report, you are supposed to go throw it and understand where you lie. Do this before you even submit your home loan application. Don’t just assume that your scores are high enough to qualify you for the loan. 

You may even find that they were an error in your report, which could have disqualified you from the house loan. Understand that credit scores have a significant impact on mortgage approvals. Hence, to ensure you are safe, try working on your credit score. Months before submitting your loan papers, ensure you are in good books with a lender and know what is the easiest mortgage to qualify for.

Gather Your Documentation & Keep Your Financial House In Order

The other thing that you need to do to increase your chances of getting your mortgage is to keep your house in order. Gather all the documentation papers required during the application process. Don’t be the kind of person that does things during the last minute because this will cost you a lot. Get your financial house in order before you even start the process. Pull together your bank statements from all checking accounts and savings. 

In case you have other investments that bring you income, ensure you have the receipts and documents to show that you are the actual owner. Once the lenders realize that you have a constant cash flow and several investments, they consider you a potential client. Remember, mortgage companies in Texas, don’t want to incur losses due to you failing to repay the loan they gave you. Also, ensure you provide tax returns of your business if you have any, as these are essential things the lenders look at. If you are self-employed, ensure you put certificates of all the taxes, you have remitted for about two years. Also, prepare your most recent profit and loss statement showing the costs, revenues, and expenses you have incurred during that fiscal year.

As much as getting a mortgage for your house is a daunting task, it is still possible for your dreams to come true. You only need to prepare in advance, to ensure the lenders don’t find a reason to deny you the mortgage.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today!

How To Apply & What Are The Texas Conventional Loan Requirements

Tips For Applying For A Conventional Loan In Texas

Conventional loans are the most commonly got loans in America. Perhaps, that is why they have obtained the title of being conventional. You should consider several factors before deciding to apply for a conventional loan. First of all, it is extremely important to make sure you meet the requirements to apply for one. Not everyone meets the requirements needed to obtain a conventional loan. They aren’t that stringent; however, they do require an adequate credit score. A poor credit score will be the most likely reason why you are turned down. Let’s look at all the conventional loan requirements in Texas:

Conformity To The Federal Housing Financing Agency 

Conventional loans are given by a bank. They are not backed by the government in any situation. With that said, they do have to follow the laws set by the Federal Housing Financing Agency. Most of these laws pertain to loan limits and credit scores. Here are some of the requirements that are largely set due to the Federal Housing Financing Agency:

Adequate Credit Score

You will need to have a credit score that does not fall below 620 in almost all situations. Some banks require you to have a credit score of at least 640. Any credit score that is below 600 will most likely disqualify you from taking out the loan. So how can I get approved for a mortgage with bad credit? Do not become too discouraged if you have an extremely low credit score. There are many ways to fix it. Paying off credit card debt is the number one way to do it. It is important to try to at least make the minimum every month. Do not expect yourself to pay it all down in a few months. 

Small Amount For A Deposit

You do not need to put down a large deposit if you are getting a conventional loan in most cases. This is designed to help homeowners become housed if they do not have a lot of liquid cash available. Some loan companies will have a higher minimum down payment. This rule is not standard. If you can pay at least 20% of the down payment. This will make you exempt from having to get private mortgage insurance in most situations. 

The Limit Amount 

You cannot buy a $10 mansion with a conventional loan. With that said, you can buy a pretty nice home if you are a decent qualifier. In most areas of the country, the loan limit is $510,400. That is enough for a small mansion in Texas. Those who live in more expensive areas can expect to see a loan limit of $765,600. A house can be bought in Brooklyn for $500,000. How do I get a mortgage on my house? 

There is such a thing as a nonconforming conventional loan. Lenders have more freedom to decide the amount of the loan. At the highest, you will be able to get a loan of $2 million. The credit score you need to apply for this type of loan is much higher, so is the down payment. 

Is A Conventional Loan A Good Idea?

A conventional loan is a great option for those who are at least middle class. Working-class and under individuals should consider loans that are backed by the government or have subsidized. You should be cautious if you’re worried that your financial situation may change. Remember, you do not have to have an outstandingly high credit score to get a conventional loan. With that said, you should not even try if you have a credit score below 600. 

What is the easiest mortgage to qualify for? One of them is a Conventional loan can be a great way to get housing. They are the most popular choice among Americans. Those who are in better financial straits should even consider getting a non-conventional or jumbo loan to purchase a home. Getting a conventional loan will make it possible for you to get the home you want.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Contact us today Or Call Us @ (877) 280-4833

Comprehensive Guide To Qualify For A Mortgage In Texas

Who can qualify for an FHA loan? some people qualify for home loans and purchase the property of their dreams. On the other hand, many people end up having their applications denied. If you are interested in becoming a homeowner and you are worried about whether or not you will be successful, here are 6 tips that will increase the chances of things going in your favor.

1. Get Your Financial Records In Order

When you apply for a home loan, you will be asked to supply proof of all money you have made in the past two years, This includes wages you have earned from your job as well as things like alimony, child support, and bonus earnings. Your W-2 statements and your tax returns will be key, so make sure that you have copies of all this available. Applying for a mortgage without having this available is a surefire way to end up with a denial. There are different types of home loans so you should know which loan is best for first time home buyers.

2. Verify Your Current Income

This part is twofold, so make sure that you pay close attention. It will be necessary for you to gather your last few pay stubs to prove the amount you are bringing home weekly. Also, it is likely the lender will contact your boss to make sure that you work there. While they are not allowed to ask for most personal information, they will ask about the dates you started work as well as the amount of your salary. For this reason, you must be totally honest when you are filling out all of your paperwork.

3. Focus On Your Credit

Owning a home in Texas is quite hard. There is no way that you will qualify for a loan if your credit is in bad shape. If you know that your score is not as high as it could be, this is something that you should take care of before you even bother to apply. Also, if your credit is in decent shape, try your best to keep it that way. This means that you should avoid applying for credit cards, making big purchases, and anything else that can hurt your credit rating.

4. Try Getting A Raise

The more money you make, the more likely is lenders will be willing to take a chance and offer you a loan. If you have been working at the same place for quite some time, you should consider asking your boss for a raise. Even if it is only a dollar or two more, this will look great when it comes to determining whether or not you will be able to keep up with monthly mortgage payments.

5. Save More Money

When you have more money available for a down payment, this means that the lender will not have to approve you for such a large amount. As a result, you are much more likely to be funded. Having more money yo pay upfront means that the lender will have less liability, which would make you a far more appealing candidate for a loan. While most people aim to have about 15-20 percent of the purchase price available, having 10-15 percent more means that you can look forward to lenders who are more willing to work with you and monthly payments that are far more affordable.

6. Move Quickly

Once your application is accepted, you should move forward with the home buying process as quickly as possible. There are occasions when things happen and mortgages fall through. You can avoid having this happen to you if you avoid hesitating. The longer you wait to complete the process, the more opportunities you are giving the lender to change their mind.

Keep in mind that appraisals can take quite some time; speak to your lender about this to see if there is anything they can do to expedite things.

Buying a home is a common process, yet many are not able to do so because the loan process is far too complicated. If you are interested in applying for a home loan you must learn what are the different types of home loans that would suit your budget. If you also want to increase your chances of faring well, make sure to keep all of this information in mind.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today!