Qualifying for a Mortgage
Posted by Becky on 03 Mar 2008 | Tagged as: Trish Belford, mortgage, tips
Most lenders look at five factors when determining whether you qualify for a morgage loan:
- your income
- debts
- employment history
- credit history
- value of the property you want to buy
One of the first questions a lender will consider is how much of your total income you’ll be spending on housing. This helps the lender decide whether you can comfortably afford a house.
A lender will then look at your debts, which generally include house payments as well as payments on all loans, charge cards, child support, etc. that you make each month.
A history of steady employment, usually within the same job for several years, helps you to qualify. But a short history of your current job shouldn’t prevent you from getting a loan, as long as there have been no gaps in income over the last two years.
Good credit is very important in qualifying for a loan and the lender will want to know that the house is worth the price you plan to pay.
Source: Key Partners Press, January 2008
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