Do You Possess the Recipe to Become a Home Buyer? (2024)

Do You Possess the Recipe
to Become a Home Buyer?


As a Mortgage Lender, one of the most important messages I impress on area Home Buyers/Owners is one regarding timing ...the timing of when they should contact me when Buying a Home or Refinancing.

Do You Possess the Recipe to Become a Home Buyer? (1) If you've read a few of my past posts, you'll know the topicof timing is a drum I beat loudly and often. My rule of thumb regarding proper timing is ...

Once you've contemplated home ownership or refinancing, you need to get to a Mortgage Lender!

Below is a good example of why I believe this message is so important ...

I have a client that I'm working with right now. He's young, hard working, a saver not a spender. He paid off his Student Loans early. Saved up and bought a moderately-priced used car to avoid car payments.

Thinking he was doing the right thing, he'd paid off almost all debt he'd acquired prior to seeking my mortgage services. And he'd saved up a sizeable Down Payment for his new home. His MIDDLE credit score is 795. Yep ... 795!

Sounds like the perfect dream Borrower, doesn't he? Sounds like he's done everything right, doesn't it? And yes, he has.

Except for ...

In the current lending environment, having 3 open credit lines is the "gold standard" by which a Borrower is held and examined by Underwriters, especially if the client will need Private Mortgage Insurance or want a second mortgage. You have to be in debt and show you can handle that debt wisely to be considered worthy of more new debt.

So at this point if you're thinking "here comes the kicker" regarding my young client ... you're right. He doesn't have 3 credit lines open. He has only 1 credit card right now. It has a very very tiny balance. And he uses it extremely in-often.

Now as a grandfather, I'm hoping this young guy is still available when my grand-daughters are ready to marry. His heads on straight regarding financial matters. But as his Mortgage Lender??

Let me make this clear: This isn't an insurmountable problem. We've found a solution and are working around the insufficient number of credit lines.

A little bit of time ... a little bit of extra effort and all will be well. But it will cost him some extra time .. a it will take a little bit of extra effort to put a solution in place.

Hearing this message was somewhat confusing to my young Buyer. It certainly wasn't a message that he or his Agent were prepared for or wanting to hear. Especially given they've already started viewing homes.

So I go back to the message I repeatedly drum regarding WHEN a potential Home Buyer should seek out their Mortgage Lender. That is ...

"Sooner than Later! Sooner than Later! Sooner than Later!"

Why?

Had this young, seemingly well-positioned perfect Home Buyer come to me earlier in his home buying process, we would have discovered and tackled his credit issue ... his credit "blip" ... immediately. And that would have eliminated any stress factor he faces now and erased any delay placed in his home search.

Do You Possess the Recipe to Become a Home Buyer? (2)

To navigate through Underwriting cleanly and quickly, today's Home Buyers must be "positioned".

Buyers must come to think of that "positioning" as their personal recipe for success. A recipe where the proper ingredients ... the proper seasoning ... must be measured and added in the exact right amounts ... then baked for the right amount of time.

Ahhh ... a reference to timing again!

As I said above, this young and deserving client will buy and finance his new home successfully. But the glitches and blips he encounteres along the way could have been avoided if we had talked earlier.

So, if you're thinking of buying a Will County or Chicagoland home now ... or in the future ... contact me immediately. Remember ... "Sooner than Later" is preferred, pro-active, and wise.

Be informed and educated sooner than later. Get your credit checked sooner than later. Polish and spruce it up sooner than later. And give yourself enough time to act upon your Lender's recommendations.

Do You Possess the Recipe to Become a Home Buyer? Potential Chicagoland Home Buyers need to prepare their financing "recipe" perfectly and well in advance of starting to view homes.

Doing so increases and strengthens bargaining positions with Sellers. When this important step is done, Buyers can respond and act quicklywhen they find their perfect home ...

Do You Possess the Recipe to Become a Home Buyer? (3)



* Hoping to become a Home Owner or Refinance in Will County or elsewhere in Chicagoland? Contact Me today! I'll put my 37years of mortgage experience and expertise hard to work on your behalf.
I can be easily found at the following:

Direct: 815.524.2280

Cell/Text: 708.921.6331

eFax: 815.524.2281

www.genemundt.com
gmundt@goapmc.com

Do You Possess the Recipe to Become a Home Buyer? (4)

Do You Possess the Recipe to Become a Home Buyer? (5)

Do You Possess the Recipe to Become a Home Buyer? (6)Do You Possess the Recipe to Become a Home Buyer? (7)Do You Possess the Recipe to Become a Home Buyer? (8)Do You Possess the Recipe to Become a Home Buyer? (9)

Do You Possess the Recipe to Become a Home Buyer? (10)Do You Possess the Recipe to Become a Home Buyer? (11)

Gene Mundt, Mortgage Lender,a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.

Your Referrals are Greatly Appreciated!

Subscribe to my Monthly Mortgage, Real Estate, & Credit Newsletter!

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Do You Possess the Recipe to Become a Home Buyer? (2024)

FAQs

What are the requirements for first-time home buyers in Virginia? ›

Borrower requirements:
  • 3 percent down payment (down payment assistance available)
  • 640 minimum credit score for Conventional Loan; 660 minimum credit score for Conventional No Mortgage Insurance Loan.
  • Maximum 45 percent debt-to-income (DTI) ratio.
  • Amount borrowed can't exceed conforming loan limit.
Feb 12, 2024

What qualifies as a first-time home buyer in Michigan? ›

Program Description:

Available to first-time homebuyers (have not owned a home in the previous three years) statewide and repeat homebuyers in targeted areas. Household income limits apply and can vary depending on family size and property location. Sales Price limit - $224,500 statewide.

What qualifies as a first-time home buyer in Florida? ›

You must meet the IRS definition of a first-time homebuyer which means, you cannot have owned AND occupied your primary residence for the last three years prior to purchase.

What are the 5 steps in the home buying process? ›

Let's break down how to get there.
  • Step 1: Prepare your finances. Before you begin your search for a home, figure out what you can realistically afford. ...
  • Step 2: Prequalify for the right loan. ...
  • Step 3: Call a real estate agent. ...
  • Step 4: Lock in your mortgage. ...
  • Step 5: Prepare to close.

How much is a downpayment on a first time home buyer in Virginia? ›

The minimum amount of a down payment depends on which loan program you use. Some mortgages, such as VA loans, won't require any down payment at all. In other cases, you'll typically be asked to put down 3% to 3.5% of the price of the home.

What is the minimum credit score to buy a house in Virginia? ›

The required credit scores for mortgages in Virginia differ based on the type of loan. Conventional loans demand a score of 620, while government-backed loans are more lenient. However, a score below 500 makes mortgage approval difficult.

What credit score is needed for MSHDA loan? ›

To qualify, you must meet the following requirements: Complete Homebuyer Education classes. Have a minimum credit score of 640-660 (depending on the type of home). Meet household income limits based on area and household size.

What is the 10K grant for first-time home buyers in Michigan? ›

The MI 10K DPA loan program is a 0 percent interest loan of up to $10,000 available to those who qualify for a MI Home Loan and who complete a homebuyer education course. The funds can be used for a down payment, closing costs and prepaids/escrow payments. The loan carries no monthly payments.

What is the $25000 grant for Detroit residents? ›

The Detroit Down Payment Assistance (DPA) Program provides qualified families grants up to $25,000 for down payments, pre-paid including interest rate buy down, closing costs, and principal reduction when purchasing a home using a purchase mortgage or a purchase renovation mortgage*.

Can you buy a house with 40K salary? ›

If you have minimal or no existing monthly debt payments, between $103,800 and $236,100 is about how much house you can afford on $40K a year. Exactly how much you spend on a house within that range depends on your financial situation and how much down payment you can afford to invest.

What credit score is needed to buy a house? ›

The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).

How does an FHA loan work? ›

FHA loans work like most other mortgages, with either a fixed or adjustable interest rate and a loan term for a set number of years. FHA loans come with two term options: 15 years or 30. You'll also pay closing costs for an FHA loan, such as appraisal and origination fees.

What are the 4 C's when buying a home? ›

At the end of the day, securing a home loan comes down to the four C's: credit, capacity, capital, and collateral.

What are the three C's of home buying? ›

These three essential factors — Credit, Capacity, and Collateral — play a pivotal role in determining your eligibility and terms for a mortgage. Let's delve into each of these C's to unravel the secrets to a successful mortgage application.

How much money should I have to buy a house? ›

Save for a down payment: You'll typically need at least 3 percent of the purchase price of the home as a down payment. Keep in mind that to avoid having to pay for mortgage insurance, though, you'll likely need to put at least 20 percent down.

Does Virginia have a first-time homebuyer program? ›

Virginia Housing highlights and eligibility requirements

Virginia Housing programs offer first-time home buyers in Virginia helpful benefits, including down payment grants and federal tax breaks.

What are the steps to buying a house in Virginia? ›

Five Steps to Homeownership
  1. Learn the Process. Familiarizing yourself with the homebuying process is the first step in making sure you have what you need and understand what to expect. ...
  2. Choose a Lender. ...
  3. Find a Real Estate Agent. ...
  4. Finalize Your Mortgage Application. ...
  5. Attend Your Loan Closing.

Does Virginia have a down payment assistance program? ›

The Virginia Housing Development Authority (VHDA) offers the Down Payment Assistance (DPA) Grant in order to help individuals get out of the renters trap. They realize that many people who are able to make their monthly mortgage payments, don't always have enough money saved for a down payment.

How to get a mortgage in Virginia? ›

You may qualify for a conventional home loan in Virginia if:
  1. You meet the credit score requirements. ...
  2. You have an acceptable debt-to-income ratio. ...
  3. No major credit report issues, like a foreclosure or bankruptcy.
  4. A down payment of at least 3%.

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