If you are considering purchasing a home in the future something to think about is your Down Payment. Not all loan programs require a down payment like USDA and VA which are 100% financing or FHA where the down payment can be a gift from family, but if you are going to put money down then something to keep in mind is “seasoning” (keeping money in your bank account for a specific period of time) the funds currently in your Savings or Checking account.
When purchasing a home your lender will need to verify what your income is and how long you have been working for your employer. This is done by looking over your pay stubs, W2’s/Tax Returns, and a Verification of Employment.
A major component in the approval process when purchasing a home or refinancing a mortgage is your Credit Score. Ideally you would want to have a score in the 700’s for best case pricing on interest rates but some loan programs will go down to scores as low as 580.
Before you start to look at homes for sale save yourself and your real estate agent some time and speak with a loan officer to ensure you know exactly how much of a house you can afford. By spending a short amount of time working with a loan officer to review your credit scores and income you will be able to know exactly what you are comfortable with spending on your mortgage payment.