Posts Tagged ‘mortgage prequalify’

“I can’t buy a new house, I understand it is much more difficult to qualify”

That statement is just simply not true!

I can’t tell you the last loan application that I took that a borrower did NOT qualify.  I’m sure there was one but it is definately not the norm. 

I dare you to ask 5 people today, “Could you qualify for a mortgage if you applied today?” If they say “No.” Ask “Why?” I guarantee they will say “I understand it is much more difficult to qualify” but they will not have specifics as to what they consider “more difficult”.  It appears that most are repeating what they hear in the media “Its more difficult to qualify”.  It’s just not true.

Here is what people think… AND the reality in BOLD.

* I need 20% down payment, that could be 10’s of thousands of dollars! ……….. FHA requires only 3.5% and that can be gifted from a blood relative.

* I don’t want an FHA loan but cannot get a conventional loan without 20% down payment……. Mortgage insurance companies are back in the game and allowing borrower and lender paid mortgage insurance up to 95% loan to value.

* My credit score is too low… FHA allows for a minimum of 580 credit score. Conventional loans allow for a minimum of 640 credit score.  The average American citizen has a 660 score. 

* I can’t qualify to afford the payment… Most borrowers are shocked that their monthly mortgage payment is LESS than they are paying in rent. 

* I don’t have enough credit… borrowers need only 4 open active tradelines on their credit report and enough history to meet the minimum credit score requirement.

* I’m on fixed income and cannot qualify for the monthly payment ….. FHA allows for up to a 50% debt to income ratio (this means if you make $2000 a month you can have $1000 go towards total debt)

* I do not have any down payment money… the USDA Rural Housing product allows for a 100% financing on eligible properties on borrowers who meet the income eligibility as well. 

I could go on and on.  You get the point.  Spread the word to your borrowers.  Most people don’t realize how easy it is to qualify and are waiting when they could be shopping! 

Please join my “Squash the Qualifying Rumor” campaign…….Pass it on!

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!




NMLS #162494

AZDFI Loan Officer # LO-0911453

Question of the day: How quick can I get Pre-approved?

First, YAY that you want to buy a house! Second, YAY that you want to buy a house!  I’m stumped as to what most people are waiting for… inventory is great, rates are still great, FHA loan limit in AZ is still $346K and FHA allows for a minimim of 3.5% down payment AND you know a GREAT loan officer! What more could you ask for?

Getting pre-approved is easy.  All you have to do is apply! You can do that online or over the phone.  Once we have your application,  your permission to review your credit report and income/asset documentation, we can underwrite your loan in order to provide your real estate agent the important LSR document (remember, this is what shows you are APPROVED not just pre-qualified)

With that LSR, you can hit the streets! It’s that easy!

The LSR and your pre-approval does not obligate you to anything.  It only allows you to begin shopping and make an offer when you find your dream home!

You owe it to yourself to get started today!

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288 (p)

602.294.9830 (f)


NMLS# 162476