Something you may not know about applying for a mortgage with less than perfect credit

Most buyers feel that if their credit is less than perfect, they will not be able to get a mortgage. Well, that may not always be the case according to Kevin Lacatena from Sun West Mortgage Company. According to Kevin, you can actually have a 620 credit score or lower and still be eligible for some mortgage programs. Although credit score is certainly a leading indicator when getting a mortgage, it’s not the only thing. There are other factors as well, particularly if the credit history indicates that the derogatory credit items causing the low score are a reasonable amount of time behind you, there is a plausible, documentable reason for the credit issue(s) and you’ve re-established and maintained good credit since then. Some of the other things that can help if you’re in this situation include:

*A 10% or more down payment
*The equivalent of 3 – 6 months worth of mortgage payments left over in your bank account after closing
*Minimal payment shock (the difference between what you currently pay for housing versus what the new
mortgage payment will be.
*A timely, properly documentable rental payment history.
*A low debt to income ratio

There are also situations where a strong co-borrower can help.

Before you get pre-qualified for a mortgage, have these ready for your loan officer:
1. Most recent 2 years tax returns(W2, 1099, 1040)
2. 1 Month pay stubs
3. 2 Months Bank Statements
4. A recent credit report

Kevin Lacatena is a loan officer I use as a resource as well as refer to my clients. He is always available when I need him, he knows the business, his rates are competitive and he is honest. He will let you know up front whether or not you are qualified for a mortgage. If you are not qualified at that time, he will suggest ways to potentially improve your situation in order to get qualified in the near future. Feel free to contact Kevin for your mortgage needs. I’m sure you will feel the same was as I do.

Kevin Lacatena
Sun West Mortgage
1 Indian Road
Denville, NJ 07834
973-713-9379