| Deciding on the best bathroom light fixtures or the | | | | even start the home loan application process. |
| sturdiest kitchen countertops probably seems like a | | | | For what reason? Because the lender will consider |
| key part of buying a home. But, really, thats just the fun | | | | you qualified for a home loan only if he or she feels |
| part. For some, qualifying for a home loan in the first | | | | that you have enough money to pay payments with a |
| place is the more difficult task. | | | | certain level of ease. If a lender looks at your income |
| Normally, your ability to qualify for a home loan will be | | | | and debts and sees too many debts for too little |
| dependent on how well you meet up to the following | | | | income, he or she may prefer to offer you a lower |
| two standards. The first standard of measure is that | | | | loan amount, perhaps with a higher interest rate. Or |
| you be in a financial position that will allow you to pay | | | | may even decide not to approve your application at all. |
| back the loan. Lenders dont always make this process | | | | Your lender has evaluated your debt and income |
| easy; they take a hard look at your records in order to | | | | comparison, and feels that you can make payments |
| determine your ability to pay. The number one thing | | | | comfortably? Next, theyll take a look at the next |
| lenders will look at? Your current employment. | | | | standard that successful applicants must live up to: |
| While you may think that simply having a good job will | | | | your "willingness to pay." To determine whether or not |
| entitle you to home loan approval, its a bit more | | | | you can be counted on to pay your home loan, they |
| complicated than that. Lenders will also look at the | | | | take a look at your credit report and payment history. |
| length of time youve been with your current employer | | | | If youve been good about paying your debts on time in |
| (or at least in your current field). Two years with a | | | | the past, itll be a boon to your current home loan |
| particular company or working in a particular field will | | | | application. |
| be considered steady employment, and will help you to | | | | Another important aspect a lender will keep in mind |
| present yourself as a good risk. | | | | when deciding whether or not to approve you for a |
| After looking into your employment history, your home | | | | home loan? What your plans are for the home you |
| loan lender will then look at how your income | | | | wish to purchase. If, for instance, you are planning to |
| compares to your debts after your new mortgage | | | | live in the home as your primary residence, a home |
| payment has been added in. It is always helpful to pay | | | | loan lender will generally believe you have strong |
| off as much of your debt as you can before you | | | | motivation to repay your home loan. |