Looking for a home loan is exciting regardless of your residency status. If you’re a DACA borrower, you might run into some issues. This isn’t always the case, however.
DACA mortgage loans in Houston are now available, so you can get started right away. If you have these pieces of information, you will be able to successfully complete the lending process. The article discusses some of the most important aspects of DACA mortgage loans in Houston that should not be ignored.
Pre-approval and Pre-qualification are Different
During the mortgage application process, you’ll come across two terms: pre-approval and pre-qualification. Lenders can quickly assess a borrower’s financial situation in order to pre-qualify them. On the other hand, lenders put a higher value on the pre-approval process. DACA applicants are exposed to a number of factors, including wealth information and income documentation. Pre-qualification will only give an applicant a rough understanding of the interest rate and loan term. You will get a better idea of the loan terms if you get pre-approved.
When you present a pre-approval message to the seller, he or she is more likely to see you as a serious buyer. A bidder who receives a pre-approval letter has an advantage over the competition. You can shop around for a month or two with a pre-approval message.
Good Credit is Crucial
Lenders usually need FICO scores of 620 or higher. FHA lenders can approve your loan if you have a credit score of at least 500. On the other hand, high ratings lead to lower mortgage rates. Customers with a credit score of 760 or higher are often given the best deals. If your credit score has fallen below 620, you’ll need a credit score of at least 580 to be eligible for a 3.5 percent down payment. Your lender has the final say on whether or not to sell you an FHA loan.