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Are You Qualify?

The main determining factor as to whether or not you qualify for a mortgage is your credit score. To be more specific, your “middle” credit score.

What most people don’t recognize is that you undoubtedly have three credit scores. One score with each of the three main credit bureaus … Equifax, Experian, and Trans Union.

Your scores with these bureaus can range from lowest score at 300 to the highest of 850..

As long as lenders looks over your credit scores, they’ll throw out your high score and your low score, and grant an initial “approval” based on your middle score.

Average scores for the typical person run in the mid to high 600’s. With scores in this range, it’s fairly simple to qualify for a mortgage. But scores are not a lenders only question. Extraimportant factors include:

  • 1. Stability of employment: All lenders will ascertain that you’ve been on the same job, or at least in the equal field of work, for a minimum of 2 years.
  • 2. Stability of income: All lenders are require to verify that you’ve had a stable income for a minimum period of 2 years.
  • 3. Assets: All lenders ask that you have liquid assets in an account such like a 401k or a checking or savings account, to cover at least 2 monthly payment amounts for the mortgage you’re applying for. Not required under FHA or a Va Home Loan.
  • 4. Records of “On Time” payments: All lenders will ascertain that you’ve executed rent or mortgage payments “On Time” each month for the last 2 years.

You’ll observe I say “ All Lenders … and that’s because “I am refering to lenders require you to meet these standards if you are not putting at least a 20% down payment. Several lenders, have fewer stringent requirements, will casually charge a higher interest rate to compensate for lesser standards.

Truth be told, it’s in fact easier now to qualify for a loan than ever before. Even with a past bankruptcy, you may still qualify for a loan if you have a middle credit score of at least 675, 30 days after the discharged date.

Today there are literally 100’s if not 1,000’s of loan programs at hand from a myriad of different lenders across the country. It still comes downward to one primary issue of course … your credit scores.

The higher your scores, the more options you'll have close by to you.

If your scores are low although, but you have compensating factors such as 1 and 2 above, it’s likely that you can still qualify for a loan. You might all the same be well-prepared qualify for a loan of as much like 100% of the buy price.

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