When you are ready to take advantage of Nations lending services, you want to make sure that you have the right information. After choosing your net branch lender, you want to make sure that your financial profile is in order. This will help to speed up the process and increase the likelihood of getting the mortgage amount that you apply for.
Is Excellent Credit Required to Get a Mortgage?
While better credit is certainly beneficial, there are ways to secure a mortgage with subpar credit. Just be aware that the higher your credit score, the lower your overall payback amount of down payment usually are. Now, when you are looking at different types of mortgages, you will find that with a credit score of 500, you could still qualify for an FHA mortgage. Be prepared, however, to pay a down payment of no less than 10 percent of the total mortgage. If you have a credit score of 580, you will significantly reduce your down payment amount and it could be as low as 3.5 percent of the total mortgage cost. If you are not in a big hurry to get a mortgage, working on your credit score is ideal. In just six to 12 months, you can make enough improvements, in many cases, to improve your options in the mortgage market.
Does Both Spouses Credit Matter?
This ultimately depends because you can get a mortgage for just one spouse. However, if you plan on putting both incomes on the application, the credit of both spouses will be considered. If one spouse has excellent credit and adequate income, it might be ideal for them to apply alone.
What Do Mortgage Lenders Look At?
Ultimately, this depends on the net branch lender, however, there are four primary factors they look at, including income, current debts, credit history and job history. Lenders want to see stability in these four areas because their ultimate objective is to make sure that you can pay back what they lend you.
How Much is a Mortgage Down Payment?
Multiple factors are involved in determining your down payment, so it is not possible to provide an estimate. If your credit is on the lower end, you can expect at least 3.5 to 10 percent of your total mortgage to be the down payment. If your credit is on the higher end, you can go more toward the 3.5 percent, or in some cases, even lower.
What is the Right Mortgage Amount?
Lenders often recommend that your mortgage being no higher than 30 to 40 percent of your annual income. However, this is highly individualized. You want to explore your income, your current debts and expenses and figure out a monthly amount that fits into your budget.
Now that you have more information, make sure to talk to your Nations lending services professional to determine the paperwork and similar elements that are required to qualify for a mortgage. Going into the net branch lender prepared will make the process a little easier. You can often learn more about the different Nations lending services online to aid in getting your additional questions answered at http://www.nationsbranch.com/.