I can only get a loan if I have near perfect credit:
-> Having good credit is desirable and makes things easier. Obviously, a 740 score gets the best rate and for every 20 points your rate becomes worse. Lenders take into account the entire financial picture.
I can’t have student loans to get approved for a mortgage:
-> Fannie Mae debt to income ratios can go as high as 43%. It all depends on the facts and circumstances of every buyer.
Mortgage rates will continue to remain low for the foreseeable future:
-> Rates are based on the bond market and react opposite of stocks. Rates change multiple times during the day. Don’t procrastinate!
I need 20% cash down payment to buy a home:
-> Not necessarily. It depends on the loan mortgage product. There are down payment mortgage assistance programs available from a number of sources. Some can be bought with 10% down.
I’m pre-qualified for a loan, so I am certain to get my mortgage:
-> It is a misconception that pre-qualification and pre-approval for a home loan are the same thing. This is not so! Pre-qualification is essentially an indication from a lender that, once you’ve provided some basic financial info, broadly tells you what mortgage amount you qualify for. It is, however, in no way shape or form, confirmation that you will be approved for this finance.
We are approved for a home loan, so let’s buy a car:
-> This could be disastrous. Never forget the lender is required to carry out a second credit check before the final loan approval. Your interest rate could be adjusted based on the new credit score.
I was turned down before so why go through it again?
-> If your financial circumstances have changed for the better or you get gov’t assistance, VA benefits. If we run a credit check it is a soft inquiry and does not affect your credit score.
What are the rates?
-> Depends on credit score, program, term and loan amount! A lot of factors!