How to qualify for a home mortgage.
Qualifying for a home mortgage has been tougher in recent years with the tightening of loan approval qualifications.
To qualify for a loan in this tight lending market, you should make sure your credit report is in order. A good FICO credit score is important to the loan approval process and determines your mortgage interest rate, which can means hundreds of dollars a month in savings or additional costs. That alone can hurt you or help you to qualify for a home mortgage.
Requesting credit reports may help you determine if you qualify for a home mortgage.
You should request your credit reports from all three providers and review it for any errors or omissions. If you find information that is either being reported wrong, or is not reported at all, fill out correction sheet provided with the report. When your credit report is accurate, contact a local lender and ask them about the current rates based upon your credit score.
Factors that could influence if you qualify for a home mortgage.
If you have ever been late on a credit card or revolving debt payment, it may impact your credit score. The amount of debt you have compared to your available credit may also determine if you qualify for a home mortgage.
A mortgage lender will be able to help you decide how to qualify for a home mortgage.