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Work with Your Realtor
Loan Guidelines
Credit
Work with your Lender
Loan Types
100

It is important that realtors have a good amount of this with everyone involved in the transaction including buyers, sellers, lenders and other realtors. With this almost all deal killers can be avoided.

What is Communication

100

The amount of money you can borrow compared with the price or appraised value of the home you are purchasing.

What is Loan to Value

100
The Minimum credit score you need to qualify for a home loan is.
What is 620 for SDHDA and Conventional (investors can use a different minimum credit score) 640 for FHA. i.e. Franklin Mortgage requires a 660 to do a 95% LTV. MGIC's (private mortgage insurance) has a minimum credit score of 620.
100
Documents you need to provide to your lender for a home loan.
What are paystubs, bank statements, tax returns and W'2's for 2 years. Note * This is not an all inclusive list, work with your lender to determine what other documents may be needed for a successful loan closing.
100
A loan obtained to purchase real estate, and is a lien on the home or property that secures the promise to pay back the debt.
What is a Mortgage
200

What is the cut-off age for buying a home?

There is not one! age is a protected class.

200
This is the key income requirement to qualify for a mortgage loan. If this changes during the loan process it can instantly deny your loan
What is Employment
200

2-4 years must have passed from this life event in order to qualify for a home loan.

What is Bankruptcy discharge Note * 2 years for FHA and 4 years for Conventional

200
Making a significant purchase during the loan process may increase this and deny your loan in the meantime.
What is Debt to Income i.e. cars, furniture, appliances, etc.
200
No down payment is required for these two types of home loans.
What is Rural Development and VA
300

Offers you protection for a specific period of time against potentially costly problems, like unexpected repairs on appliances or home systems

What is a Home Warranty

300

Usually required if you have less than 20% down payment

What is Private Mortgage Insurance

300

True or False: In order for me to purchase a new home I have to sell my existing home and be homeless for a while.

What is False Note * Can close the same day or use a bridge loan. If bridge loan is used must qualify with both house payments and bridge loan payment.

300
Established by your lender and serves as a place to set aside a portion of your monthly mortgage payment for homeowners insurance, mortgage insurance and property taxes.
What is an Escrow Account
300
A parent or another related 3rd party can give this to you to help with the down payment, closing costs, and pre paid expenses, no repayment of this is required.
What is a Gift
400

This professional performs checks on the electrical, plumbing, and HVAC systems. The results can be a deal breaker.

What is a Home Inpsector 

400

Supplying two years of tax return history and/or a Year to Date Profit and Loss statement is required for this type of borrower

What is Self-Employed NOTE * must have a two year history of self employment or can't use the income.

400
These items may be used if you do not have a credit score to show you are able to pay bills on time in lieu of a traditional credit report, this will work with the SD Housing FHA program.
What are utility bills, verification of rent, insurance and cell phone bills for the past 12 months with no late payments. Note * can get a payment history from your providers.
400
Not having this information to your lender may cause delays in getting you your closing statement ahead of closing.
What is Homeowner's Insurance, home inspection invoice or any other final bills that need to be paid at closing.
400
This loan type generally offers a lower initial interest rate, monthly payments can be lower and may allow you to qualify for a larger loan amount and are tied to a specific index or margin.
What is an ARM loan