Qualifying For Real Estate Financing in Sarasota
Just because the Sarasota real estate market has taken a dive over the past couple of years doesn’t mean qualifying for real estate financing in Sarasota will be any easier. In fact, when buying Sarasota real estate you need to have control on your financial situation and your credit, otherwise qualifying for real estate financing can be a nightmare.
First things first…You need to get a copy of your credit report so that you can find out what your credit score is and why. Poor credit does not mean that qualifying for real estate financing will be impossible. Basically, the better your credit score the better the terms that you will be offered on a mortgage. Most people that haven’t been late more than 30 days, once or twice, in the past year can generally qualify for a FHA or conventional mortgage. These types of mortgages will have lower fees, interest rates, and payments.
There are times though, when even those with some minor credit problems are still able to qualify for real estate financing. However, if you have had some collection issues or some payments that were 60-days late you will be required to explain what caused the problems. You will probably find that you qualify for a “sub-prime” mortgage loan. Lenders that deal in this type of loan are more willing to take a risk on people that have had credit problems in the past as this area is their specialty. Due to the increase in risk you will pay higher fees and interest rates which in turn calculate into higher payments. Unfortunately, this may force you to choose a home that is lesser than you may have originally chosen.
As for those that have had some major credit problems there is still a chance that you can still qualify for real estate financing, however it is much more difficult. People that have had a bankruptcy that has been discharged for less than 2 years cannot qualify for a conventional loan, however they may be able to qualify for a sub-prime loan. If, on the other hand, you had a bankruptcy that was discharged over two years ago and you have been working to rebuild your credit during that time then you can qualify for a conventional loan.
When buying Sarasota real estate, it is definitely in your best interest to get a pre-approval for a loan so everyone involved knows that you qualify for real estate financing. Not only will this will help you determine your price range, but you will find that sellers and real estate agents are generally easier to work with when they know that you already qualify for real estate financing.
If you’re thinking about buying Sarasota real estate, or have questions about qualifying for real estate financing in Sarasota, make sure to contact Tanya Waxler, a knowledgeable and honest Sarasota real estate agent @ http://www.uKeepCommission.com