How to Qualify For A Home Mortgage

If emotions are involved when buying a home it can cause great trouble. The reason is that there are already so many stressors included when it comes to purchasing a home that when emotions also factor in, things might get out of hand and chances of closing a wrong deal increase.

Where emotion is a kind of stress that you can fight back, getting a housing loan on the other hand is a stress which has to be faced by almost everyone who plans on buying a home. Being a first time buyer, you may be unaware of the process that it takes to qualify for a house mortgage and this is what ignites your stress level.

To get a mortgage loan you need to remember that financial institutions do not just give loans to everyone, or least they don’t anymore.  These lenders will only provide you with a mortgage loan if they feel secure and are certain that you will be able to pay them back both, the principle amount along with the interest.

The basic four things that a lender may require from you in order to sanction your loan are:

1.  Down payment: Banks will require a down payment of up to 20% of the purchase price.

2.  Steady employment: Banks will require you to provide guarantee for your steady future employment plans at least for two years.

3.  Clean credit score: History of clean or good credit score is another important requirement by banks which oblige you to have a credit score of approximately 660+.

4.  Monthly Income: Before a lender approves your loan, it will require you to have a monthly salary which is at least twice the amount higher than your monthly mortgage
installment.

So, before you head your way to a lender for a loan , try to fulfill these requirements in order to get through a stress-free mortgage process. However, if you do not satisfy all these points then do not worry as you may still have other options.  Just talk to a lending professional to assist you through this exciting process.

Author:
Danny Wright