I wish I could give you some magic formula, a simple, “you need to make x amount of money” and you would have a straight answer. But, it just doesn’t work that way.
There are many different loan types, many different lenders, many different people with all kinds of debt and varying income. Because of this, each person is looked at on an individual basis. One of the first things we try to do is figure out what kind of loan we think we may be able to get. In order to do this, we must ask you about 10 questions. While doing this, we are eliminating loan types to narrow down what loan we feel you can get and what lender we think will give you the best loan, the lowest rate, and the best service.
As we never know who we are talking to or what your circumstances are, the only way we can help is to ask a lot of questions. Things like, have you served in the military, have you ever owned a home, have you ever had a foreclosure, a bankruptcy, a divorce? Do you pay child support, how long do you have left paying on your car? All of these questions help us determine in what direction we need to go.
One could ask, doesn’t my lender do this? Absolutely! However, a good Realtor will want to know a general idea of your circumstances. Remember, our job is to help you get a home. There are as many loan companies out there as there are loan types. Sometimes one lender may not give you a loan and it may need to be transferred. We need to know your circumstances, in order to know what lender to place you with. Some Realtors will tell you, "That's not my job. I don't get involved in financing." I have seen MANY times, a buyer’s loan get rejected at one company, then, we moved the loan to another company and closed it. The loan company that rejected your loan is probably not going to offer help with that! Your loan may have been rejected because it didn't fall under that particular lender’s criteria, not necessarily because you are not credit worthy. Different lenders have different criteria (or overlays) that must be followed.
You should also know, a bigger company is not necessarily better, and small is not inferior. Different companies have different investors and loan programs. Typically the consumer does not know this kind of information. Because we do this every day, we have a pretty good idea who can best help you depending on your circumstances.
Your lender is the absolute authority on helping you obtain the loan. Our job is to make sure you are matched with the best lender suited for YOU.
What about your credit score? In most all cases, at this writing, you will need a minimum credit score of 620. Your income and debts will also determine whether you can obtain a loan or not. Again, each person is looked at on an individual basis.
Also know, there are many people out there especially when it comes to personal relationships, who may not want their Realtor to be involved in any part of financing, that is okay too. It is not a requirement than any Realtor be involved in financing.