Before you pick out the home of your dreams, it’s important to know if you are in good financial stature and aren’t a risky borrower.
Many people will tell you and warn you that acquiring a mortgage can be a lengthy and complicated process. Throw in questionable credit blemishes and you’re in for a bumpy and uphill battle. Before you pick out your dream home, you have to know if you’re going to qualify for the mortgage. Unlike in 2008, when lenders gave a mortgage to just about anyone, lenders have certain requirements that you must fulfill if you are to get a mortgage. Here’s how you can know if you are going to be a risky borrower in the eyes of your home lenders.
- Employment history is unusual
W-2 employees working 40 hours per week are the most attractive to lenders. If you don’t have at least two years of tax returns to properly represent your self-employment income, acquiring a loan becomes trickier. Ask a mortgage professional to review your tax returns to determine how much you can actually afford.
- Your down payment is zero
Lenders require that borrowers be financially vested in their home from the very beginning. That means if you don’t have a down payment, you’re going to have to jump through hoops to showcase your worthiness.
- Your credit score is under 620
The easiest ways for a lender to get a snapshot of your ability to make future payments is to check your credit score and see how financially responsible you’ve been in years’ past.
Contact a dedicated home loan specialist like me, Andraya Coulter. I serve the Bay Area and the entire state of California and Texas with quality, suitable, home loans! I can help guide you through the refinance process and make sure you get the home loan you deserve. Call me!