Are you thinking about buying a new home? Gone are the days of 100% financing with zerodown payment. So if you are not sitting on a pile of cash, the idea of finding the money to paythe down payment
Qualifying For A Loan
Qualifying for a Loan – What do I need to qualify?
Before you start searching for your new home, the first step is to speak with a lender and determine your budget. This is being pre-qualified for a loan. Once you find the right home, then your lender will order an appraisal of the property and complete your financing. If this is your first home purchase, or if it’s been a while since you’ve purchased, understanding how to prepare for the qualifying process is the first step to success.
What do I need to qualify for a home loan?
When preparing for your meeting with the lender gather all the pertinent documentation and bring them with you. The lender will want to see 2 months of employment pay stubs and bank statements, as well as the past 2 years of tax returns. After reviewing your income and savings, the lender will also order a credit report which shows all your recurring debt and payment history. This will be used to determine your ability to pay the proposed mortgage.
How does credit, down payment and income affect my ability to get a loan?
There are a variety of loan programs available. From 0% down VA loans to traditional 20%down loans, your lender will review all your options with you so you can determine the best program. Some government guaranteed loan programs, such as the VA or FHA, are more lenient with your credit score requirements as well as other qualifications, such as savings and income ratios.
Qualifying for a home loan might feel overwhelming, but your lender can walk you through the process and requirements. After learning your options, you can make the best financial decision for your new home loan.
For more information or to set aside some time to discuss, don't hesitate and contact me, Your South Florida Agent!
Mirtha Guzman PA
Realtor® ABR® MRP®
Direct Office #786-245-7455