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Am I Qualified For A Home Loan?

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Mortgage Qualifications

When we envision a successful future, our dreams almost always tend to include a home. Each of us may differ in house preferences yet the goal remains the same—a place to call our own!

Financing is the most important aspect of the home buying process. Although your financial status is one of the many things that lenders will look more closely at, it doesn’t mean you can get a mortgage because you have a tremendous credit history and impressive assets.

Here are some factors that will be considered in your application:

Down Payment

The 20 percent down payment is all but dead. You can now make a down payment of 5-10 percent or apply for loans from the Federal Housing Authority that requires a 3.5 percent down payment. However, a mortgage insurance is a prerequisite for down payments of less than 20 percent.

What Is Your Ideal Down Payment?

Job History

Banks and lenders are also concerned about whether you can keep up with your mortgage payments. This means your job history will be vetted carefully.

Debts

Lenders will want to know that you’re earning enough to handle all of your bills, not just your mortgage payments. So all of your debts, including credit-card balances and student loans, will be weighed against your total household income. Avoid applying for new credit during the three to six months prior to securing for a mortgage.

The True Cost of Buying A House

Credit Score

Credit scores signify your trustworthiness to financial institutions and can determine how easy, or how expensive, it is for you to get a mortgage. To determine your ability to pay, lenders look at your score and they prefer you to have good or excellent credit. 750 to 850 score is considered excellent; 700 to 749 is considered good; a 650 to 699 is fair; and 300 to 649 is poor.

Buying a home requires a lot of financial responsibility. It is a complicated process and a trusted realtor is the best person to protect you through the whole transaction.

Home Buying: Working With The Right Realtors In Bakersfield

 

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About The Author
Sanjeev Advani

• Hundreds of Investment Real Estate transactions successfully closed • 350+ Units currently under Property Management • 3+ Years of Construction Management Experience • Certified Property Manager, CCIM (In Progress) • Bachelors in Finance • Bakersfield, CA Native Deep Dive: I have been licensed in real estate for almost 10 years, and I have been specializing in investment and commercial real estate for the past 6 years. Through the years I have worked with Real Estate Developers, Investors, Average Joes, and many more. I am a Bakersfield native, and my educational background is in Finance. I have just completed the CPM (Certified Property Manager) certification which is one of the most prestigious designations in the Property Management Industry, with less than 1800 members world wide. I am also the President of the Board for Habitat for Humanity Golden Empire, the Vice President of the Board for Income Property Association of Kern County (IPAK), and Vice Chair of the Commercial Investment committee at the Board of Realtors. I look forward to working with you towards your real estate investment goals. Sunny Advani California Agent Lic# 01869863 | California Broker Lic# 02012941 Email: Sunny@RE-Synergy.com | Phone: +1 661 235 5726