Wondering If You Qualify?
TO BUY A HOME?
Mortgage Lenders Use Four Criteria To Determine If You Qualify For A Home Loan.
Your Credit Score
Mortgage lenders typically want you to have a credit score of at least 620 or higher. Some lenders will go as low as 580 but your interest rate will be high. The lowest interest rates are available to borrowers with higher credit scores. There are strategies that can boost your credit score quickly. Give us a call and we will tell you how!
Income
You must prove that you have steady income and can afford to repay your mortgage. It is easier to qualify with income reported on a W-2. There are additional requirements for income reported on a1099. Give us a call to discuss!
Debt-to-Income (DTI) Ratio
Your minimum monthly payments on all outstanding debt is compared to your monthly gross income. The maximum allowable ratio varies by lender but most will not go above 41- 45% for an overall debt-to-income ratio. Give us a call to learn how to compute your DTI.
Debt-to-Income (DTI) Ratio
Your minimum monthly payments on all outstanding debt is compared to your monthly gross income. The maximum allowable ratio varies by lender but most will not go above 41- 45% for an overall debt-to-income ratio. Give us a call to learn how to compute your DTI.