DACA status is a visa status that is offered to the ones, who came to the U.S. in their childhood with their parents without a visa and have been here for the majority of their lives. Many of the ones who qualified for this status are now into their adulthoods. With this status, one can apply for a home loan program and buy a home easily.
Do you also want to opt for DACA mortgage loans in Houston? It is a great idea. But if you don’t have any experience of opting for this kind of loan, you can make some mistakes. To save you from such misdeeds, here we have listed down a few mistakes that you should avoid –
Misuse of credit cards
When you are short of cash, your credit card works as your savior by offering the required finance. Or, if you need to buy something on an urgent basis and don’t have the immediate cash for making the purchase, you can use your credit card. But you should always remember this that your debts can affect your credit score, and a low credit score is not something that you want to have, especially when you are looking for a home loan program as a DACA recipient. Making misuse of your credit card can drastically affect your credit score. Therefore, you should try to minimize the use of your credit card before opting for a home loan program.
Not paying debts on time
In order to get approval for a home loan as a DACA recipient, you need to show your financial stability to the mortgage lender. One of the crucial things that can affect your financial stability is your credit report. In case you have not cleared your previous debts on-time, there is a great possibility that you may not get approval from the lender. Even after deportation, the debts will be in your name, and as a result, and so, the lender may deny approval for the uncertainty that you may fail to return the loan. And for this, getting a home loan with the prior debt will be impossible for you. So, clear all your previous debts on time to ensure the loan approval from the lender.
Not saving for the down payment
If you have not saved only a minimal amount or nothing for the down, then it is a great mistake. A down payment is an amount that you have to pay the lender when you buy a home on credit. With a conventional loan, you have to come with a 20% down payment. When the amount is less than that, you need to pay the private mortgage insurance for a specific period or the life of the loan. Besides, with a low down payment, you can’t get the best mortgage rate that is possible with a high down payment. So, try saving for a down payment from today.
So, save yourself from making these mistakes when applying for a home loan as a DACA recipient, and realize your dream of homeownership.
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.