how do i get approved to buy a house?
looking into buying a house in the next few months but i have a few problems.
i have no idea how i'll get approved for a loan for a mortgage when i have no stateable income! my boyfriend gets paychecks but i'm not sure that that's enough to get approved on his own/ i make enough money that we can both def afford it, but i don't know legistically how we will get approved for it.
HELP!!
Re: how do i get approved to buy a house?
i dont know a lot about this sort fo thing but i hear the way to go is owner financing, then you make your payments to them not a lending co. or thats how i understand it....
Re: how do i get approved to buy a house?
You got to ask a broker. Preferably not a seedy broker. A lot of these types are worse than strip club management.
They WANT to sell you a loan, so they will have plenty of ideas.
Re: how do i get approved to buy a house?
Where reputable mortgage lenders are concerned, the recent 'subprime' mortgage default debacle and the ensuing new regulatory guidelines for mortgage lenders has now created a situation where the creditworthiness of the borrower must be thoroughly checked.
A - this means that in order for the mortgage lender to 'count' your dancing income as being 'real money' available to make mortgage payments, you're going to have to prove that you earned it ... and earned it with regularity. The easiest way to do this is to show the bank 2-3 years worth of your past tax returns.
B - this also means that mortgage lenders are going to cover their own asses in regard to potential future declines in real estate market prices by requiring a 20% down payment. With fees and closing costs, this means that you + BF need to have about 25% of the cost of the house you are planning to buy sitting in a savings account / CD's / other liquid investments.
C - this also means that the lender is going to check both your own and your BF's credit ratings ... and will probably not approve a loan if either credit score is below 620.
With the 'subprime' mortgage losses that lender banks and their investors have recently taken, and with the gov't mortgage 'bailout' plans being proposed denying mortgage lenders and their investors the right to foreclose on delinquent mortgage loans and/or forced to accept lower interest rate payments from troubled homeowners, there is now basically a 'shortage' of investor money available for making new individual home loans. As such, would be mortgage borrowers with less than great credit ratings and/or 'unusual' income sources are now having a much harder time obtaining mortgage financing at affordable interest rates.