The typical process involves submitted a mortgage application with the lender of your choice. Once you do that, you'll then have to uploads the last 30 days of your paystubs, your most recent W-2 if employed and tax returns if your self-employed. Once complete, your loan officer will submit your loan file to underwriter where a mortgage underwriter will review all documents received and will issue a formal loan approval! Any outstanding needs will be coordinated to get your loan closed fast and streamlined.

The best loan program will greatly depend on your current credit score and financial situation (Income to qualify and what your down payment would be) If you have above a 700 fico and putting at least 5% down, most of the time conventional might be the best route to go. For a credit score of 660 or lower and wanting only a 3.% down payment, an FHA loan will likely offer better terms than conventional. If you previously served in the military, a VA loan can give you 100% financing with no down payment and no PMI either. For Self employed borrowers that have large amount of write off's, a bank statement could be the best solution for you.

Most secondar Markets will not purchase a QM (Qualified Mortgage) loan if all borrowers on a loan do not have any credit history at all. Fannie Mae and Freddie as of June 2022 just came out with new guidelines that allow 12 mo' of rental history to be a compensating factor to be included for borrowers that do not have a credit score. If you don't think you have any credit history, call our mortgage hotline to talk to a loan officer and see what alternative options there are.

The biggest difference between a conventional loan and an FHA loan is that an FHA loan will yield a better interest rate, although your MIP (Mortgage insurance Premium), same as PMI will not be removed for the life of the loan. For Conventional, once you reach 20% equity or an 80% LTV (Loan to Value), then mortgage insurnace per the loan servicer is required by law to remove it from your payment. In order to get rid of Mortgage insurance on an FHA loan, you will have to indeed, do a Mortgage refinance.

Your Mortgage payment will consist of these four main elements : Principal & Interest , Taxes , Home Insurance and Mortgage Insurance (if putting less than 20% down). Selecting and shopping for the best interest rate as well as your down payment make the largest impact to your total monthly mortgage payment becoming smaller or larger from projections.

For Conventional loans, you will typically need at least a 620 credit score. FHA and VA do let you go down to a 550 credit score, but some lenders put restrictions on this and will often times tell you it is 620 for government loans as well, which is lender specific. Most Lenders In texas, follow Guideline Minimums. USDA min is 580