Qualifying For A Loan

Dated: 06/27/2019

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Qualifying for a Loan – What do I need to qualify?


Before you start searching for your new home, the first step is to speak with a lender and determine 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 is your first home purchase, or if it’s been awhile since you’ve purchased, understanding how to prepare 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 and bring them with you. The lender will want to see 2 months of employment pay stubs and bank records as well the past 2 years of tax returns. After reviewing your income and savings, the lender 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 best program. Some government guaranteed loan programs, such as the VA or FHA, are more lenient with your credit score requirements as well as other qualifications, such as savings and income ratios. 

Qualifying for a home loan might feel overwhelming, but your lender can walk you through the process and requirements. After learning your options, you can make the best financial decision for your new home loan. 


Need to find a lender?

At Sam Barnes Realty, we're happy to put you in touch with great lenders who've helped our clients with single-family homes, townhouses, condos, and vacant land. Just let us know and we'll put you in touch with a lender who will work hard to get the best deal for you on a loan.


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Tim McLaughlin

Buying or selling your home is one of the most exciting times of your life! It can also be scary, confusing and stressful. I’ll work hard to make that process as painless as possible for you. I spen....

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