Qualifying for a Mortgage
Feb 9, 2009 Uncategorized
Unless you have a few hundred thousand dollars burning a hole in your pocket, you’re going to have to take out a mortgage in order to buy a house. And you need to make sure that all of your finances are in order so there will be no last minute snags to precent you from buying your dream home.
Let’s go over exactly what lenders look at when you qualifying you for a mortgage.
Your credit history. Your lender will pull a copy of your credit report and check it very thoroughly. They want to get a good picture of how you pay your bills and what kind of borrower you are.
Do you pay your bills on time? Do you make a habit of paying them late? How many different accounts do you have open? What are your credit limits for each account and what are your current balances? Do you have any liens against you? Have you ever declared bankruptcy?
These are all questions that a lender will want answered before agreeing to loan you money. If you’ve missed a payment here or there, its not the end of the world. But if you frequently miss payments or pay late, the lender will view you as a greater risk. Read the rest of this entry »
