First Time Home Buyer Credit Criteria
July 15th, 2010
Question: what is the requirement for $400k home loan?
What is the minimum requirement to get a loan for $400,000 or any loan. I want to make sure what exact criteria that need to qualify. How long you have to work in the same company or multiple company to combine a minimum requirement that they need? how much you have to earn in monthly gross if you do it yourself or a co-sign include? what do bank need in minimum % down payment and closing cost?. Sorry if i ask too much questions. I want to understand what i will get myself into. I know there might be more requirment that i didn’t listed. But I just need this basic informations to see where i stand for a first time buyer with a credit score of 750.
Answer: Every lender has its own requirements. The three things that help determine your rate are income, credit history and cash on hand. Most lenders are no longer granting stated income loans w/ zero or small down payments. Most lenders are requiring 5-10% down (20-40 k on $400,000 loan, not including closing costs) with proof of income. Most lenders like to see a history of 2 years in the same job with reliable income. And of course a good credit history. You should have 3 active credit sources (ie. car loan, credit card, school loan) that are reporting to the credit bureaus. I hope this helps you. Most importantly: understand your loan. Read every line. Understand points, APR, fixed rate vs. variable rate, interest only, amortization, negative amortization, balloon payments, penalties, etc. If you don’t understand some of these terms YOU WILL GET BURNED, guaranteed,
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