Factors That Will Affect Your Eligibility To Get A Home Loan
Applying for a mortgage loan with a lender is something that some people feel overwhelmed about. After all, there are many types of loans available to choose from, and choosing the right one is difficult. In addition, there are many factors that can affect your eligibility for a loan. If you really want to buy a house and are not sure if you qualify for a loan, the best thing to do is talk to a lender to find out. Here are the factors the lender will discuss with you to find out if you are eligible.
The lender will probably ask you about your credit score, as this is the one factor that can help or hinder your ability to get a loan. People with high credit scores typically qualify, but people with lower ones may have a harder time. Your credit score will determine what types of loan packages you will qualify for.
If your credit is not great, the lender may ask you if you have ever filed bankruptcy or had a foreclosure occur. These factors too can play a role in determining your eligibility for a mortgage loan.
The amount of money you earn is also important in the loan process. Your income will help the lender determine how much money you can borrow if they approve your loan. If you make a lot of money, you will be able to borrow more.
In addition to your income, you should understand that lenders look at a person's job. Have you been at the same job for at least two years? If not, have you at least worked in the same industry for two years? Lenders look for stability and reliability when they examine a person's occupation and work history.
Your down payment
Finally, your lender will ask you how much money you have to put down on a house. There are certain loans that require 20% down, but there are others that may require 0% or 3.5% down. This factor will have a huge impact on the type of loan package you qualify for.
There are several other categories of questions lenders also ask when they are determining eligibility. If you want to make sure you will not get turned down, make sure your credit is good and that you have money to put down. If you are ready to apply for a loan, contact a lender today.