DACA recipients can now apply for home loans, but not every mortgage product is the same. From credit score to documents, many things play a favorable role. Since you have been eagerly waiting for mortgage loans for a long period, you need to keep financial groundwork in mind. Before everything, remember to collect non-expired documents. An unexpired Employment Authorization Card and an authentic Social Security Number are essential. These two papers ensure their legal residency when you are willing to apply for Fannie Mae.
Before you jump into the process, do your research. It is pivotal to grasp a deep understanding of the home loans for DACA recipients in Houston, TX. Lenders are now familiar with the DAC A loans but do not expect the same from everyone. Follow a simple rule to get rid of early confusion – discuss with the lender about the financing option you prefer. Currently, Dreamers are only qualified for traditional loans. The HUD does not offer a lawful status to the DACA holders, and FHA loans cannot help in fulfilling your dream of homeownership. Once you register necessary pieces of information like this, the whole process is likely to run well.
So, let’s go through the important things you must remember before applying for DACA mortgage loans in Houston.
Know your mortgage rates
Irrespective of the loan program, everyone’s eyes are usually on the interest rates. There is one simple way to reduce the rate – work on your credit scores. Mortgage rates typically go up and down, and you can learn a lot by shopping around. If you lock in the rate, you are likely to get a particular interest rate over a certain period. Make sure the lender reveals the annual percentage rate because it indicates the annual interest rate. Remember, refinancing is a smart move when interest drops in a fixed-rate mortgage. Of course, refinancing often includes origination fees, closing costs, and application fees.
Know your credit score
Without understanding your FICO scores, you should not face the DACA loan application. Due to their citizenship, many lenders raise the bar. Again, other lenders have no qualms about their financial capacity. Definitely, everything comes down to the credit scores. The credit report gives a comprehensive view of your credit scores. It is smart to carry excellent credit scores, but many lenders are ready to permit good credit scores, too. If you wish for a low mortgage rate, make sure you have at least 730. A high credit score does not seal the deal; a steady income along with cash reserves can prove to be great benefits. Try to gather payment history and work on upgrading scores.
When you are sorted, apply for a DACA loan. The lender will run a credit check and give a nod for pre-approval at an early phase. However, this does not keep you sorted till the closing! The lender checks credit scores at the very end. So, keep these tips in mind and assure yourself of a smooth DACA loan process.