It seems like everyone is taking the big leap from renting to owning. You have given it some thought about buying your own home but you are a little nervous if you’ll qualify for a loan. These are a few characteristics to determine loan eligibility:
Credit History: Most lenders are requesting that you have a credit score of at least a 640 to be considered for any loan. Consider paying down credit cards, requesting settlements from past debt, or consider a credit repair agency in boosting your points to meet the minimum requirement.
Employment History: Lenders desire that you have a minimum of two years of steady income, documented employment, or an income resource. Business owners are required to supply 2 years of documented tax returns and other financial documents.
Cash: Why you need cash? Isn’t that’s the reason why you are asking for a loan. They’re concerned if you have the discipline to save your money for needed repairs or unfortunate circumstances. Most lenders desire to see a minimum of $2000 for savings. This is not a requirement but can assist in out of pocket expenses.
Your lender will go over specifics about qualifications and suggested improvements. Please, contact us if you are in need to be contacted by a lender.