Method for securing a home loan
Here's how to snag that dream home with a bad-ass mortgage:
Straight-Up Guide to Getting a Motherf*cking Mortgage
Step 1: Get Your Credit Game On Point
Why bother? A good credit score tells lenders that you handle your debt like a fucking boss and can score sweet interest rates. For mofo's with credit scores in the 700s, the best loan offers land in their laps. For the rest of us, well, we might have to work a little harder, but we ain't f*cking complacent!
Follow these steps to boost that credit score:- Pony Up on Time: Always pay those bills on time, and keep your credit card balances low. Your payment history accounts for 35% of your credit score, and a single late payment can fck it up big time.- Kick Debt to the Curb: Pay off your debts—the higher the interest, the faster you should tackle 'em.- Ask for a Credit Limit Increase: More credit with the same balance can lower your credit utilization, which is 30% of your score.- Steer Clear of Bullsht:** Avoid opening new accounts or closing old ones. New accounts create hard inquiries, and old accounts contribute to credit history length.
Conventional loan
Step 2: Slay the Down Payment Dragon
3%
Saving for a down payment is crucial, and 20% is ideal for reducing your mortgage loan and dodging private mortgage insurance. But if you can't swing the 20%, don't trip—you can still get a home with as little as 3% down on a conventional loan, 3.5% on an FHA loan, or even no money down on a VA loan.
Also, don't neglect your emergency fund. Many experts recommend putting aside six months of mortgage payments, on top of your down payment. You never fucking know when life is gonna smack you upside the head.
FHA loan
Step 3: Compare Offers from Multiple Lenders (Minimum 3)
3.5%
You might be able to save a fuckton of cash by shopping around for your mortgage. So slap on your big boy or girl boots and compare offers from at least three lenders. And don't forget to factor in closing costs, which usually total between 2 and 5% of the loan principal.
Step 4: Embrace the Grind and Get Your Mortgage Application On
VA loan
Decided on your lender? Great! Now it's time to apply for that mortgage and get ready to hand over a shitload of documents like proof of income, proof of assets, gift letters, and more.
Typically 0%
Remember, pre-approval is not the same as pre-qualification. Pre-approval involves more documentation and a hard credit check, but it increases your chances of getting your offer accepted by sellers.
Step 5: Keep It Lean and Wait for the Underwriting Process
USDA loan
Even though you've been pre-approved for a loan, there's still a chance you won't get approved during the underwriting process. So keep your financialshit together: Avoid making major purchases or applying for new credit during this time. Answer questions promptly to avoid delays, and, if possible, don't change your financial situation.
0%
Step 6: Close the Fucking Deal
After getting the green light from underwriting, it's time to close that motherf*cker. Closing costs typically run between $3,000 and $6,000, so get ready to shell out. But once it's done, you'll be the proud owner of a new home.
FAQ- How much income is required for a mortgage? It depends on your debt level and the size of the mortgage. Lenders prefer a DTI ratio of 36% or less, but they might accept up to 50%.- What kind of loan do I need to qualify? You'll need to meet the specific eligibility criteria for the loan you want, such as credit score, debt, and down payment requirements.- Where can I get a mortgage? You can secure a mortgage through a direct lender like a bank or credit union, a mortgage broker, or another type of lender. Skip those sketchy online offers and compare top offers on mortgage rates.- Don't be Shy, Ask Questions: It never hurts to get some assistance when shopping for a mortgage. Ask for guidance on finding the best loan for your situation. And don't be afraid to inquire about down payment assistance programs you might qualify for. While asking about interest rates can be beneficial, remember some lenders won't disclose a rate until you've applied for prequalification or pre-approval.
Here's how to improve your credit score like a boss:- Check your credit reports for errors and have them corrected or removed.- Pay all of your bills on time and reduce credit card balances to improve your credit utilization.- Avoid opening new credit accounts or closing existing ones, and pay down debts effectively to reduce the overall debt burden.- Maintain good credit habits long-term to steadily improve your credit score over time.
Follow these simple steps, save your dough for a down payment, and you'll be ready to buy that f$cking house you've always wanted.
- To secure a favorable mortgage rate and access better loan offers, ensure your personal finance is sorted by improving your credit score, keeping debt under control, and maintaining a low credit utilization.
- While shopping for a mortgage, don't forget to compare offers from multiple lenders, including conventional, FHA, VA, and USDA loans, to find the most competitive mortgage rates and terms that suit your personal-finance needs.
