Mortgage Advice

Q- How do I know if I have enough credit to qualify for a home loan?

A- You can go to www.annualcreditreport.com and pull your own free credit report at this site. You should have 3 lines of credit that are open and you use monthly or every two months. If you only have two lines of credit it is possible to do a loan and document an alternative source like a utility bill, or cable bill. There are always exceptions to the rules so you should seek the advice of an expert that can review your situation and advice you accordingly.

Q- Is it true that short sales still take a long time to close?

A- If you are looking for a home and you have a specific time frame that you need to be in a new home then a short sale is probably not for you. Yes, depending on where the seller and bank are on the paperwork it can take anywhere from 3 to 9 months and we have seen a few up to a year.  True that the home is being lived in so it is normally in better condition but you may not even get the home after waiting for a long time for the process.

Q- I was thinking of buying a condominium. What are the pros and cons to buying a condominium?

A- Condominium guidelines have changed a lot and it is not as easy to get one. You not only have to qualify to purchase but the condo has to qualify as well. There is a lot of prep work to see if the condo meets the federal guidelines. If going FHA financing the complex has to be on the approved for condominiums. If you are going Conventional then they have a list too but you can get a review done based on certain criteria and that is where I say you need to seek the advice of a mortgage broker and Realtor to determine the possibilities. You can purchase more home for the price too because a condo has an association fee that is monthly that has to be added into your qualifications and we have seen association dues in excess of 300-400 a month. So be careful when you what to stay in a comfort range for payment. Seek the advice of a Mortgage Broker that can work through the scenarios to show you how much you can afford for a house vs. a condo.