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DACA recipients go through a difficult time while applying for a mortgage. The problem starts when they look for a mortgage with small down payments. Since the guidelines of FHA loans do not regard DREAMERs as lawful citizens, they are exposed to a strenuous situation. They can apply for DACA home loans then. When buyers look for the DACA mortgage programs, their friends suggest putting extra attention to the documentation. More than the paperwork, you need to focus on the credit scores.
The process of choosing one of the best home loans for DACA recipients in Houston, TX can be easy. Once you have the complete knowledge of your credit score and how it is going to affect the loan program – you can get the best deal. Understanding where your FICO score is standing is quite crucial to figure out. Typically, private lenders ask for a higher credit score and large down payment. Having a poor credit history indicates that the deal can turn into an expensive one. So, you should prepare for how much you need to save and pay per month. Moreover, keep the following tips in mind so that you are ever-ready to apply for the mortgage you want.
See where you are currently standing
Many DACA recipients need to work on improving their credit since many of them have had a rocky financial condition. Start the process by finding a copy of credit reports from the major credit bureaus. Your credit scores obtained from the three reports are not going to be the same. You need to follow this step because lenders gather the credit reports and choose the middle score. When you start taking the information into account, you can understand the entire process. Check your credit on a regular basis and make it a habit. This will help in sorting out any problem present in the report. Many borrowers find errors in the report and the issues which pull down your credit.
Go for mortgage pre-approval
Before you have decided to root for a particular house, choose pre-approval. Find your credit report and make sure it is clean as it can be. Pay down the outstanding debts so that you can increase the credit score. After following these steps, you need to find a lender or broker. Also, find yourself a pre-approval certificate. Pre-approval letter and pre-qualifying letter are not the same. The lender pulls the borrower’s credit report and pre-approves the borrower. The pre-qualifying stage is the same as picking out a house.
In the end, you need to focus on making on-time payments for credit cards and loans. Keep a track of your credit utilization rate, as it is an essential factor. Make sure your credit cards are open. Many DACA borrowers make the mistake of closing the credit card account. This is one of the things that can pull down your credit. Before focusing on your credit scores, make sure you have found a lender willing to provide DACA loans in Houston.