The pre-approval letter is what your real estate agent requires prior to showing properties, negotiating terms and submitting an offer to purchase a home on your behalf. The 2 steps to apply for pre-approval are explained at the bottom of this page.
As a mortgage broker, I have relationships with multiple lenders that finance all credit type borrowers. Getting approved for a home loan is a layered qualification process and upfront my lenders are looking for a minimum 500 credit score to consider you for financing, in addition to the minimum credit score a lender will review your credit history. The lower your credit score under 580 the higher your down payment requirement.
The higher your credit score over 580, the more flexible the following credit history requirements.
When completing your pre-qualification review, I take your credit report and short loan application information, run it through an underwriting software called Desktop Originator looking for an "automated approval". Desktop Originator makes the initial credit decision for most home loans. If you do not qualify for the "automated approval" then some of my lenders participate in a second chance manual underwriting approval process. As of the date your credit is pulled with Charmaine Roberts & Associates these lenders are looking for you to have re-established satisfactory payment history by showing zero late payments on your installment or housing accounts over the last 12 months, and no more than two 30 day late payments going back months 13 thru 24. With the exception on medical bills, no new collections over the last 12 months. On revolving accounts like credit cards up to two 60 day late payments within the last 12 months. Lenders are also looking for a minimum of 3 credit lines open on your credit report for at least 12 months. We can use “non-traditional” credit like rental history, utility bills or car insurance payments to meet the minimum credit line requirements if you are short those minimum open lines.
Your last 2- years employment history, income, current monthly debts and last 60 days of assets are also evaluated. If you’re not self-employed then lenders require you to be a permanent W2 employee at the time of your loan application. It’s ok to have worked for a staffing agency within the past 2 years.
My partner lenders offer the zero down payment Veterans Administration Loan down to a 500 credit score if you meet the manual underwriting credit history requirements I previously explained. The higher your middle credit score over 580 then the more flexible the credit history requirements and the better chance you'll obtain an automated approval. The same credit requirements apply to the FHA loan, you can qualify for 3.5% down payment with a minimum 580 credit score or 10% down payment on the FHA loan with credit scores from 579 down to 500. I also have alternative credit partner lenders that will lend with your challenged credit as is down to a 500 credit score with higher down payment requirements. The lower your credit score, the higher your down payment requirement.
If you have good credit history and qualify for the "automated approval" then the USDA loan at zero down payment is a good option if you want to buy in an area designated by the USDA to lend. USDA loans are normally zoned in rural areas of Georgia and the minimum credit score requirement is 640. Fannie Mae and Freddie Mac both offer 3% down payment programs for the first time home buyer with good credit history and a minimum 620 credit score. First time home buyer means you have not had ownership in a property over the last 3 years. Under the Fannie Mae, Freddie Mac first time buyer programs, there may also be income restrictions depending on the location of the property you want to purchase. I also have a partner lender that offers 1% down payment with a minimum 720 credit score to a first time buyer and jumbo loans meaning a minimum loan amount over $424,100 starting at a 620 credit score. Some of my jumbo loan partner lenders require automated approval and I have alternative lenders that do not require the automated approval.
Once you apply I'll review your file to determine if you credit qualify and the maximum loan amount then I'll complete your income and credit verifications. You'll provide me your last 30 days of paystubs, your last 2 years of W2 and Federal Tax Returns, detailed employment information, landlord contact information and your last 60 days of bank statements. If applicable, any documentation to prove receipt of disability, alimony or child support income. Once I've reviewed all the income documentation to include a written verification of employment from your payroll dept and a verification of rent from your landlord, then I'll issue a pre-approval letter for you and your realtor to begin shopping for your home.
Applying for pre-qualification is a 2-step process.
PART 1: CLICK HERE TO COMPLETE THE SHORT APPLICATION
PART 2: CLICK HERE TO ORDER YOUR CREDIT REPORT
The credit report is $30 for an individual or a joint report. I do not make any profit on the credit report fee.
You’ll receive and instant copy of your credit report after you purchase it so download and save it for your records.
After receipt of your application and credit report, I’ll contact you within 24-48 hours.
Thank you for your business and please call or email me with any questions.
info@crobertsandassociates.com
404-919-0593