What You Need To Know To Get A Home in South Carolina

There common elements between all mortgage products that prospective borrowers should be aware of.  The most important element in the mortgage application is the FICO Score.  FICO scores are a combination of the borrower’s credit score from the 3 major credit reporting agencies.  Generally, each lender will either average the scores to fit you into a loan program or use the score from one specific agency.  Credit scores are derived from your credit activity.  You credit usage is monitored and graded by the credit agencies.

Typically inexperienced borrowers are insecure about their credit score.  They are not really sure if the score is high enough to get a loan. While it is true that generally the higher the credit score the lower the interest rate will be, there are quality loan programs available for lower credit scores.  Different lenders have different parameters for their risk ratios.  This is where a mortgage broker can help.  A full service broker, like Homefront Mortgages in Summerville South Carolina, can review multiple lender programs to find the one that best fits the borrower’s situation.   A broker can review you credit during a free consultation and discuss with the borrower whether the score needs to improve and make a plan on how to accomplish it.  Many times borrowers are pleasantly surprised to find they are qualified for a mortgage loan as they currently stand.

The next most important piece in a borrower’s application is the borrower’s employment. Most commonly a steady 2 year employment history is necessary.  This can be either W2 employment or Self employment.  However, there are some lenders that only require 1 year and can be streamlined if your other application elements line up.  A full service broker can help you apply for best lender and best program for your needs.

Down payment is also very important when applying for a home loan.  Conventional mortgages require 20% down of the purchase price.  However, there are many programs that can offer a lower down payment. FHA loans may only require 3.5% down payment and there are USDA loans programs that may apply that are as low as $0 down.  A full service mortgage broker like Homefront Mortgages can find the best program to fit the amount of down payment that you have to put on a home.

These are just some of the elements that are considered when applying for a home mortgage.  As you can see, there variables can be confusing and varied.  A full service mortgage broker can guide you through the application process and find the best loan product, best lender and lowest mortgage rate for your situation.

If you are in the Charleston South Carolina area and are looking for a home loan, contact Homefront Mortgages today for a Free Consultation. 

Call (843) 261-6181