What Do I Need To Qualify For A Loan

Dated: 06/04/2019

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Before you start searching for your new home, the first step is to speak with a lender anddetermine your budget. This is being pre-qualified for a loan. Once you find the right home,then your lender will order an appraisal of the property and complete your financing. If this isyour first home purchase, or if it’s been awhile since you’ve purchased, understanding how toprepare for the qualifying process is the first step to success. 

What do I need to qualify for a home loan? 

When preparing for your meeting with the lender gather all the pertinent documentation andbring them with you. The lender will want to see 2 months of employment pay stubs and bankrecords as well the past 2 years of tax returns. After reviewing your income and savings, thelender will also order a credit report which shows all your recurring debt and payment history.This will be used to determine your ability to pay the proposed mortgage. 

How does credit, down payment and income affect my ability to get a loan? 

There are a variety of loan programs available. From 0% down VA loans to traditional 20%down loans, your lender will review all your options with you so you can determine the bestprogram. Some government guaranteed loan programs, such as the VA or FHA, are morelenient with your credit score requirements as well as other qualifications, such as savings andincome ratios.Qualifying for a home loan might feel overwhelming, but your lender can walk you through theprocess and requirements. After learning your options, you can make the best financialdecision for your new home loan.

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Jason McLaughlin

Jason has lived in the Golden and Arvada area for more than 25 years attending Golden High School and then later gaining a Bachelors of Science Degree in Organizational Leadership and Emergency Manage....

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