Bold City Real Estate’s Jury Da Silva recently sat down with Andrew Cady to answer the most common questions that home buyers ask when preparing to buy their first home as it pertains to mortgages.

Q.    How early should someone get in touch with a mortgage lender when preparing to buy their first home?

    If you’re thinking about getting a home anytime in the next 6 months it would be really smart to check with your lender right away. Often times people believe their credit is better than it actually is because most of the credit scores they see from the “free credit monitoring” places are actually using a simulated score. Checking with your lender early will prevent last minute issues.

Jury says she’ll wear high heels for the next meeting!

Q.   What are the biggest roadblocks buyers run into?

   For sure credit or deposit issues. Home buyers are often uninformed on how the credit process works and try to fix things themselves rather than using a professional and often times end up with worse credit than before. Large deposits that cannot be sourced can become a major headache in the loan process. Be sure to check with your lender before making any large deposits 60 days before buying a home so they can properly explain the documentation needed for the specific type of deposit.

Q.    What credit scores are lenders looking for?

    Most lenders want a score of 640 or better. We here at Nations Lending can work with buyers down to a 580 score depending on their circumstances. Obviously the higher the score the better, but it can also be financially beneficial as interest rates in many cases are credit score dependent.

Q.       What can I do if I have a lot of student loan debt?

       Student loan debt is not a direct prevention of mortgage lending, but the monthly payments on the loans can quickly add up and cause debt-to-income ratio problem. If your loans are in deferment, your lender will need to plan for 1% of the balance as a payment (different per loan program)

Q.       How long do I need to wait to buy a home if I have a bankruptcy?

   Depending on the loan type and bankruptcy chapter, your waiting period varies from 2 years to 4 years. If a home was foreclosed with the bankruptcy it can complicate the process and extend the waiting period depending on the loan program chosen.

Andrew Cady and Jury Da Silva

Q.    How many credit cards (Revolving Credit) should I have in my credit history?

   Two cards and those cards should never have a balance greater than 30% of the limit.

Q.    What to do if I have discrepancies on my credit report?

   Speak with a professional. Trying to remedy your own credit blunders can cause major issues. There are a slew of credit repair professionals out there for a reason and they should be utilized to assist.

Q.    How much of a down payment do I need?

   This is very program dependent. If you’re a military veteran you may be eligible for a $0 down loan. If you’re buying a home in rural America you also might be eligible for a USDA $0 down loan. The FHA program requires 3.5% as a down payment and conventional requires 3% for first time home buyers or 5% for non-first time buyers.



More about Andrew Cady, including contact information, can be seen here:

More about Jury Da Silva can be seen here: