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Frequently Asked Questions

Myths and misconceptions are often reasons why people don’t purchase a home of their own. What is surprising is that so many people have the same questions and concerns. Majestic Homebuilders’ experience in working with first-time buyers and building affordable new homes makes it an experienced company in dealing with the challenges and concerns that face buyers.

Here are some of the most commonly asked questions

Do I have to have perfect credit?
No. If your credit needs work, we are happy to work with you or to introduce you to an organization that ha s a proven track record in the guidance towards home ownership of families that need credit help.

I would love to buy a new home, but how do I know how much I can afford?
Our price list actually shows the minimum family income required to qualify for each home.  This minimum requirement is also affected by your existing debt, so please ask us to help you figure it out more precisely. Click to view our price list.

How much do I need to make?
Lenders look at the overall debt-to-income ratio. They like to see that your monthly housing payment, plus everything on your credit report (including car payment, credit cards, etc.), is not more than 46% of your total gross monthly income (before taxes).

What if I am self-employed, or if I receive all or part of my income in cash? Can that income be considered?
Yes, although it is slightly more difficult. If you have three years of tax returns in a stable business, we can work with you!

How much credit do I need to have established? What if I don’t have other loans or credit cards?
The FHA and other lenders are very willing to consider what they call “alternate lines of credit.” That is, any type of payment history that shows that the buyer is able to make regular payments on time. These can include items such as rent, utilities, telephone, car insurance and child-care payments. If a buyer can show clean, 12-month payment histories for at least 3 of these types of alternate lines of credit, that is generally good enough.

If I cannot qualify for a loan alone, by myself, can I put another person on the loan?
Yes, and this is fairly common, with many families helping each other. A husband and wife can apply for the loan together, but other family members, even friends, can also sign the loan. The only thing to keep in mind is that, by signing, they are agreeing to fulfill the obligations o the loan.

Who pays the Realtor?
If you are working with the Realtor his or her commission is paid by Majestic Homebuilders. The seller (builder) pays the Realtor a standard commission. The price for the buyer is the same, whether or not a Realtor is involved in the sale. No reputable builder will offer the buyer a lower price for excluding a Realtor from a sale.

Understanding Credit
While it is not absolutely necessary that you have a perfect or extensive credit history in order to purchase a new home, having good credit is definitely a plus. Residents of Texas can now get free copies of their credit reports every 12 months, because of a federal law called the Fair and Accurate Credit Transactions Act (FACT) Act. You can obtain a free copy of your credit report at www.annualcreditreport.com.

Do you still have more questions?
Email us!

Everyone has a unique situation, but probably not something
we have not handled before - so give us a call and let us try to help you.

Majestic Homebuilders. A registered trademark. 2010. All rights reserved.
Copyright. January 2010.