What's the difference between prequalified and pre-approved?
Prequalified is a rough estimate based on what you share, with nothing verified. Pre-approved means a licensed lender has reviewed verified income, assets and credit. Pre-approval is what sellers take seriously.
Do I need perfect credit to buy a home?
No. Higher scores usually mean better pricing, but FHA guidelines can allow scores as low as 580, and manual underwriting exists for complex files.
How much do I need for a down payment?
Often less than people think. FHA guidelines allow 3.5%, some conventional programs 3%, and VA and USDA programs can allow zero down for those who qualify. Grant and assistance programs may help too.
I'm self-employed. Can I still get a mortgage?
Very often, yes. Lenders can use a two-year average of your tax returns, or bank statement programs that use 12 or 24 months of deposits. Try the self-employed income calculator.
What is DTI and why does it matter?
Debt-to-income is the share of your gross monthly income that goes to debt. It is one of the most common reasons for a denial. Common back-end limits run from about 43% to 50% depending on the loan.
What is PITIA?
Principal, Interest, Taxes, Insurance and Association dues. Together they make your true monthly payment.
What should I not do while my loan is in process?
Do not buy a car or furniture, open new credit, move unexplained cash, change jobs, co-sign a loan or add new monthly bills until you have your keys.
I have collections on my credit. Am I out?
Not necessarily. Medical collections are treated differently under modern scoring models, and past setbacks do not automatically disqualify you.
What is a DSCR loan?
A loan that qualifies based on the property's rental income instead of your personal income. Many investors use them to scale.
What is the BRRRR strategy?
Buy, Rehab, Rent, Refinance, Repeat. A way to recycle your capital into the next property.
Do I need an agent before I get pre-approved?
Under the 2024 NAR rules, buyers sign an agreement with an agent before touring homes. Many people get pre-approved first, then choose their agent.
Does Village Premier make loans?
No. Village Premier is an education and community platform. We do not make loans, quote rates or take applications.
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