I am interested in purchasing a house. I am single male 38. I have student loans totaling 30,000 and my monthly salary is 4,000 gross. What do I need to do to secure a good mortgage?
First Time buyer San Antonio
Dear: First time Homebuyer,
This is a terrific question. In today’s lending environment, it is always best to speak to a lender and see if you can qualify for a mortgage before you go home shopping. So, I would speak to a knowledgeable lender to see where you stand first. As a lender, the two most important things that we will look at are your credit history, to show that you have typically been responsible with your credit (your credit score). And the second thing we will look at, is your ability to pay (your income). As a first time homebuyer, based on the initial information you have provided me, you may very well qualify for a Down Payment Assistance program (DAP). There are a few that I like to use in particular, but, as an example, we could look at the Texas State Affordable Housing Programs DAP. This program would require you to have a 640 FICO score and your annual income could not exceed $74,520. This program will provide up to 5% of your loan amount for your down payment and closing costs. So, we could combine that with an FHA loan, that requires 3.5% down and still have some monies left over for closing costs. So, the good news is, YOU DO NOT have to have thousands saved up to buy your first home. So, don’t be afraid to research your options, you may very well qualify today and just need to be pointed in the right direction to take your first step towards home ownership. Now, I know this is a lot of information to go over all at once, but the short answer is, there are many opportunities for first time homebuyers to buy a home. If you are paying $1000 or more per month for rent, you are throwing your money away and should seriously start thinking about buying your own home, creating your own wealth and building up a nest egg of equity for your retirement. For further questions and guidance, please email me directly at CHuizar@swbc.com