Florida Home Loan FAQ

Is it difficult to get approved for a loan?

The short answer is NO. As long as you are currently working, have a salary of at least $30,000 per year, and your credit history is not terribly bad, you should be fine. More than one person can be on the loan.

What are the minimum FICO score requirements?

Working with me you can get approve for an FHA loan with FICOs as low as 500. The only problem in that case is that if your FICO score is between 500 – 579 you will need a 10% down payment. So, in general is better to try to improve your credit score before.

I want to improve my credit score in order to apply for a mortgage. Should I pay collection accounts?

Never pay collection accounts. If you are really interested in applying for a mortgage, please give me a call and I will run your credit (it will cost you $14.25 to run your credit) and will tell you the steps to follow in order to get approved. Almost every day I get calls from people with low scores. A few months later, most of them are able to buy their homes.

I know a lot of friends/family that were declined on their mortgages, why could be different for me?

The loan officer and the bank you use make all the difference when applying for a mortgage. Many people go to their banks to get approved because they think that since they have money with the bank, then it will be easier for them because they are already clients. That is a big mistake. Commercial banks are only in the business of doing the “easy” loans to people with high FICO scores, high income and high down payments. I am able to close loans to a lot of people that were declined by their banks.

What are the minimum down payments to apply for a loan?

It depends on the type of loan, but in general:

FHA: 3.5%
VA: 0%
Conventional: Usually 5%, but I also have programs for people with higher FICO scores where the down payment can be even 1%.
Jumbo: Most people will be 20%. but I have programs with 10% down payment

How much money do I need to buy a house?

This one is a tricky question, difficult to give an exact number. You will need money to cover down payment, closing costs, and prepaid such as insurance and escrow balances. A good rule of thumb is to calculate between 7% to 8% of the value of the house.

Do I need to have all the funds to buy the house in my bank account?

No, that is a big misconception that people has. There are different options that you will have working with me, such as gifts from relatives and/or employer, lender credit, etc. All of that is part of structuring the loan well from the start, that is why is so important for you to work with someone that really understand the guidelines of the industry.

At the same time, you cannot pretend to buy a $200,000 with only $1,000 on your checking account UNLESS you have a parent willing to pay for all the expenses (down payment, closing costs and prepaid escrows).

Is there a cost to get prequalified?

There is no cost and no obligation to get prequalify by me. Worst case scenario you will only need to pay for your credit score and that is a cost of $14.25. I will answer all your questions and will tell you all the steps you need to take in order to qualify for a mortgage.

What is the first thing I need to do?

If you are serious about buying a house, the first step is to call me and get prequalify. I will need the following information from you to do the prequalification:

  • Taxes from the last 2 years
  • W2s from the last 2 years
  • Last 2 paystubs from your job
  • Date of birth and current address

I will tell you from the start if you qualify or not so you won’t waste your time.

How long is the whole process?

The prequalification from me usually takes 2-3 days. After you get my prequalification letter, you need to start looking for a house with your realtor. Once you have a signed purchasing contract, it takes me about 23-26 days to close the loan for you.