When you are enlisted in the DACA program, you must be occupied with your limited chances to get approved. At present, the situation is not so bad and you can still apply and get approved for home loans except the FHA loans. As there is still no reason why you cannot get hold of a mortgage, you can dream of buying the big house you have been eyeing since you were a little guy. Moreover, many lenders are willing to offer conventional loans to the qualifying homebuyers.
Before jumping into the whole process, you should gather essential information beforehand. Go through the following tips and tricks before applying for DACA mortgage loans in Houston.
Do Keep a Track of Credit Report
A lender checks your credit report to determine whether you are eligible for a DACA mortgage and at what rate. You can get a free report once a year from any of the reputed credit rating agencies such as TransUnion, Experian, and Equifax. After getting the credit report, you should run a thorough review only to check if it is accurate. In case there are mistakes, you should take immediate measures to rectify the report. Also, look out for suspicious transactions because many individuals become victims of identity theft every year. When you see transactions that do not belong to you, it is vital to report right away. You need to follow up with or report to the credit agencies for solving the irregularities taking up your credit report.
Don’t Ignore the Documentation Process
The documentation process is more than essential when you are looking for a way to buy a home loan. A DACA borrower needs to undergo an elaborate documentation process due to their special status; however, it is not that difficult. You need to find evidence of SSN which you can prove with the Social Security Administration. There is also a need for proof of an EAD (Employment Authorization Document) which permits you to find employment in the United States. Besides the additional paperwork, you should also meet other regular requirements applied to U.S. citizens.
Do Save Enough for a Large Down Payment
Did you know having a large down payment can open a window to several benefits including low mortgage rates, reduced or no mortgage insurance premiums, and affordable monthly payment? Most importantly, large down payment offers lower mortgage rates that you will over the life of a home loan. If you are ready to put a little bit extra, you can save thousands over the loan term. Moreover, a 20 percent down payment or greater does not require mortgage insurance. Considering the difficult financial situation of DACA status holders, less than 20 percent down payment comes with flexible PMI options.
In essence, it is always good to be prepared to avert the impending risks and dodge other bullets on time. You can further ask for a lender’s help to get through a tricky situation with ease and fulfill your cherished dream.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.