What Your Lender Looks at Before Giving You a Home Loan

Credit and the home buying processaround from job to job, (especially different fields) this
Unless you're a cash buyer your credit will decide, ifwill make you look unstable as for as being able to
your qualify for a loan,what type of financing, downpay back the loan. Another tid bit of information is in
payment, and interest rate.order for a bank to consider a 2nd job as income you
What will the banks look for?must have been employed a minimal of 2 years.
· Credit History-If you have been paying your· When you do get pre-approved, it is very
bills on time and more than the minimal your creditimportant not to be late on payments or purchase any
score will be higher than if you have been later on yourbig ticket items. The banks will run another check and
payments, maxed out credit cards and pay only theany late payments or big purchase items could stop
minimums.your loan dead in its tracks, or at the very least hold up
· The banks will also be reviewing your debt tothe loan until your credit improves, which could mean
income ratio. If your ratios are high than the mortgagepaying off a credit card or two. At that point your
amount approved would be lower. Sometimes it onlybank or mortgage broker would order a re-score of
takes paying off some of the credit cards, to improveyour credit.
your credit score and to qualify for more.It's a good it idea to view your credit at the very
· Job stability will play a major factor intobeginning of your home search, this way if there are
qualifying for a loan. Have you been at your currentproblems with the credit you'll be able to work them
job for 2 years? If you have, the banks will lookout prior to applying for a loan, or at least before you
positively at this, however if you have been bouncingclose on a home to save perhaps on the interest rate.