First Time Home Buyer Loans in Phelan
Are you looking to buy a home loan in Phelan? All American Financial Services has been serving the Antelope Valley for almost twenty years. We are well known for our practical knowledge about home loan financing and for our straightforward and clear pricing. Here are a few helpful hints and tricks about what you should do before applying for a mortgage loan!
Employment: it is just a straight forward fact that lenders are going to want to know you have been employed for at least a couple years in the same business before offering you hundreds of thousands of dollars. The straight forward fact is that they want to know you can pay off the home loan without defaulting. However, there are some exemptions. Lenders are typically okay with the fact that you may have had two to three jobs in the comparable line of work over the last number of years. Just call All American Financial Services; your home loans experts today at 661-949-6681.
Personal Mortgage Insurance is an additional fee that you will pay for having less than a 20% home loan down payment. Picture it as an insurance policy for the mortgage holder for offering a home loan at a greater loan-to-value ratio. So, if you were to purchase a $300,000 home in Phelan, the lender wants you have $60,000.
However, keep in mind that in order to obtain a home loan, you must have at least 6 months of mortgage payment in reserve. We know it sounds complicated, but just pick up the phone and call All American Financial Services today.
Down Payment: The most affordable way to buy a house is to have a 20% down payment. This will make sure that you will avoid personal mortgage insurance, otherwise known as PMI.
Debt to Income Ratio: Having a debt to income ratio of greater than 33% can be cause for concern. Home loan lenders want to know that you do not have an overwhelming amount of debt before you purchase a new home. With that in mind, let’s use the following numbers for example: Lets say you have a $6,000 gross monthly income, you should have no more in monthly debt than $1,980.
Fixing Your Credit: Everyone wants to have the lowest interest rate on a home loan. This is why it’s so important to have amazing credit when applying for home loan financing. Our team at All American Financial Services has credit repair analysts that will help eliminate negative items from your credit report. In order to receive the best interest rate, you should have a FICO score of 720 or more. Just pick up the phone today to get qualified for a new home loan.