Thinking of buying a new house but wondering if you can get approved for a mortgage payment?
The good news is that there are a LOT of different types of home loans for many different types of homebuyers.
And there will likely be something that works for you, too.
Either way, we thought it might be helpful to give you an overview of what factors into whether you’re able to get approved for a mortgage or not.
Here’s some stuff to keep in mind!
Down Payment Size — The larger your down payment, the easier it’ll be to get a loan and the better interest rate you’ll get. A 20% down payment is ideal but less than that is possible with different types of loans.
Credit History — Unsurprisingly, lenders will also look at your credit history. They usually look at FICO scores to determine your eligibility and interest rates.
Work History — Lenders want to make sure that borrowers can afford to make monthly payments… and so they also want to see a consistent and reliable work history.
Debt-To-Income Ratio — The debt-to-income ratio examines how much of your income is going toward paying off debt. Generally speaking, lenders try to avoid lending money to applicants above 43% DTI.
Type Of Loan — There are many different types of loans for many different budgets and types of homebuyers. So make sure to ask the lender about all your options before making a decision.
Hope that helps!
If you need to sell a property, give us a call at 334-422-4477 — we can make you a fair cash offer, buy as-is, and close in as little as two weeks!