Qualifying quandary: The fear that keeps people from buying homes


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  • m.g. scott clearfield, UT
    May 14, 2014 8:04 a.m.

    If you have VA, use it! No down, and likely no mortgage insurance. Plus, if you are paying over a thousand a month for rent anyway, it might not be that much more for a mortgage paymnent. The best reason to apply now is to see what is needed to qualify if you don't currently. Take a close look at the details of your credit report. We had some errors and when corrected it rose our rating about 80 points. Now is the time to take advantage of the low interest rates. I've seen them well up into the teens in the past. Don't be afraid, you can't lose in applying, and may be pleasently surprised at how close you might be.

  • Acegrace Lilburn, GA
    May 13, 2014 7:43 a.m.

    You can have your credit pulled for free with many mortgage bankers such as myself.
    The $50 charge is for a full credit report and is charged by mostly mortgage brokers.
    We pull a briefer "overview" credit report that costs us about $10 and we don't charge for that until the loan actually closes.

    Things are getting more relaxed. My company went from 640 to 620 minimum scores on FHA recently (and our competition, Wells Fargo, went down to 600 last week.)
    The debt-to-income ratio of 43% of your gross monthly income is still a key factor although we can get around that with FHA and VA in most cases also. (Max 50% is the real key.) FHA costs more in mortgage insurance premiums so it's not "free" to be more easily qualified.