How Can I Get Qualified For A Mortgage Loan?

A century ago, if you were to ask, how can I buy a house? The only answer is for you is to save enough cash for the purchase. These days though, almost everyone who can comply to basic requirements is given a chance to own their houses. All you have to do is apply for a mortgage loan.

There are many types of home loans these days that are beneficial to the borrower since they offer different perks like low down payment, flat interest rate, and flexible payment plans. Some of the best and most popular types of loans these days are the FHA loan, VA loan in Texas, and the conventional loans.

However, if you are planning on taking out a new loan, you need to make sure that you are qualified by preparing the primary requirements required in almost every mortgage loan there is.

Have a Good Credit

First and foremost, you need to have good credit. And when we say good credit, it does not only mean a high credit score but a flawless credit history as well. If you have lived in the U.S. all your life, then you know how important your credit is. Without a good one, it is impossible to apply for any grants or loans and even open bank accounts and credit cards. We can say that it is one of your mandatory must-haves as a citizen.

When it comes to mortgages, the minimum requirement for most lenders is 640. However, you need to set expectations that some may require higher like 680. On the other hand, there are also those that require lower at 580, which is the case for most government-insured loans.

Have a Stable Source of Income

One of the essential requirement you need to have is a stable income. If you have a business, it should have a steady income. On the other hand, if you are an employee, you need to have been working with your current company for at least two years. There are some mortgage lenders through which may allow you to have more than one employer in two years as long as it is in the same industry. Expect them to call your company for verification, so you better have a good and clean record with your employer.

Prepare Your Financial Statement

Your financial statement is an essential part of your mortgage loan application. It is your lenders’ way of checking how much you can afford every month and how much they will approve of you. They will check your proof of monthly income, as well as details of your expenses and loans. They will also check on your bank statement to see your cash flow. Your credit card and payments will also be put to light so better make sure you are current in your refunds.

Save Enough Down Payment

For most lenders, the minimum down payment is twenty percent of the total cost of the house. However, there are many lenders these days who require less than that. If you have the means though, it is best to prepare at least twenty percent to avoid paying for private home loan insurance. And having a lower balance is also beneficial for you when repayment term comes.