{"id":3001,"date":"2018-09-26T11:21:02","date_gmt":"2018-09-26T18:21:02","guid":{"rendered":"https:\/\/www.realtyexecutives.com\/blog\/?p=3001"},"modified":"2018-10-26T14:13:20","modified_gmt":"2018-10-26T21:13:20","slug":"exactly-need-qualify-home-loan","status":"publish","type":"post","link":"https:\/\/www.realtyexecutives.com\/blog\/exactly-need-qualify-home-loan","title":{"rendered":"What Exactly Do I Need to Qualify for a Home Loan?"},"content":{"rendered":"<p><a href=\"https:\/\/www.realtyexecutives.com\/blog\/wp-content\/uploads\/2018\/09\/home-tax-deduction-mortgage-interest-picture-id903035430.jpg\"><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-3002\" src=\"https:\/\/www.realtyexecutives.com\/blog\/wp-content\/uploads\/2018\/09\/home-tax-deduction-mortgage-interest-picture-id903035430.jpg\" alt=\"\" width=\"800\" height=\"498\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Year after year, home buyers continue to make the same mistake\u2026<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They wait until they find their dream home to start the process of qualifying for a home loan. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Getting pre-approved for a home loan should actually be the very first step in your house hunt!<!--more--><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Pre-approval:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Confirms that you will qualify for a home loan when you find your dream home.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tells you how much money you can qualify for so you\u2019ll know exactly what your budget is.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Strengthens any offer you make on a home by assuring the sellers that obtaining financing to close the deal won\u2019t be a problem.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Are you wondering what it takes to qualify for a home loan? Here are the three things you\u2019ll need:<\/span><\/p>\n<h1><span style=\"font-weight: 400;\">1. Good Credit<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Your credit history is exceptionally important when applying for a home loan. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">First, you need reasonably good credit to qualify for a home loan period. Generally, you want to have at least a 620 credit score. \u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But don\u2019t just settle for good. The better your credit score is, the lower your interest rate will be. And the lower your interest rate is, the lower your monthly payment (and overall repayment of the loan) will be!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You should also know that it\u2019s possible to buy a home with credit as low as 500 using an FHA loan. Ask your real estate agent or lender for more information about qualifying for an FHA loan. \u00a0<\/span><\/p>\n<h1><span style=\"font-weight: 400;\">2. Proof of Income<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Lenders need reassurance that you make enough money to be able to make your mortgage payments (including property taxes and homeowner\u2019s insurance) every month. So they\u2019re going to want to see proof of your income. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your lender may ask to see pay stubs, bank statements, tax returns, or any combination of those to confirm your income. \u00a0\u00a0<\/span><\/p>\n<h1><span style=\"font-weight: 400;\">3. Healthy Financial Ratios<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Your lender will also want to know about your existing debts. How much do you owe in student loans? Are you making payments on your car?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Knowing how much debt you\u2019re currently in helps your lender determine whether it\u2019s financially responsible for them to increase your debt with a home loan. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Debt-to-Income Ratio is one of the most common financial ratios lenders check. It tells lenders what percent of your income is allocated toward paying off your debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a general rule-of-thumb, your total housing cost (mortgage, property taxes, homeowners insurance and any HOA dues or mortgage insurance) should be less than 31 percent of your pre-tax income. And your total housing <\/span><i><span style=\"font-weight: 400;\">plus<\/span><\/i><span style=\"font-weight: 400;\"> all other debt payments should be less than 43 percent of your pre-tax income. \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re uncertain about your ability to qualify for a loan, or you\u2019re just wondering how much you\u2019re qualified to borrow, ask a lender. They can review your credit and financial documents to pre-approve you for a home loan in no time. \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The home loan process may not be the easiest thing in the world to navigate, but there are professionals to help you every step of the way. So contact a lender today to make sure you qualify for a home loan, and you\u2019ll be well on your way to buying your dream home. \u00a0<\/span><\/p>\n<p><i>This post is intended for informational purposes only and should not be taken as professional advice. The point of view and opinions expressed in this post are those of the author and do not necessarily reflect the position of Realty Executives International. This post was written by Michelle Clardie.\u00a0Michelle is a professional real estate blogger, specializing in ghostwriting Realtor\u00ae blogs. Her engaging content helps real estate agents become more visible online, generate more qualified leads, and increase their revenues. You can learn more at\u00a0www.michelleclardie.com<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Year after year, home buyers continue to make the same mistake\u2026 They wait until they find their dream home to start the process of qualifying for a home loan. Getting pre-approved for a home loan should actually be the very first step in your house hunt!<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[25],"tags":[229,715,714,212,213,59],"yst_prominent_words":[],"_links":{"self":[{"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/posts\/3001"}],"collection":[{"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/comments?post=3001"}],"version-history":[{"count":4,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/posts\/3001\/revisions"}],"predecessor-version":[{"id":3036,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/posts\/3001\/revisions\/3036"}],"wp:attachment":[{"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/media?parent=3001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/categories?post=3001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/tags?post=3001"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/yst_prominent_words?post=3001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}