Do I Qualify for a Mortgage?

Qualifying for a mortgage may appear to be a simple process, but in all reality, the process can be quite intricate. The steps to obtaining a new loan or mortgage will be different from one bank to another.

Here are some guidelines that will help you understand in simplified terms what to expect in the qualifying process.

Qualifying Varies From Lender to Lender

There are no secrets to the mortgage process, only that you will discover banks and lenders have requirements and rules they will follow, but not all are considered equal.

Interest rates will vary and the programs offered may be different. Be a good shopper and investigate the program options, lenders and rates available. Select the best “fit” for your needs.  Unfortunately, not all lenders will accept you as a borrower or have the exact program you want, so search wisely before making your choice.

Mortgage Qualification Process 101

The first step in the process is becoming pre-qualified. Unless you are a cash buyer, you will need to apply for a loan to purchase a home or property. Requesting to be pre-qualified means you will knowbefore you purchase just how much you are able to spend.

Consult a Capital City Home Loans associate to help with pre-qualifying. Questions about your liabilities and income may be asked in order to run numbers for a more exact figure. It can then be determined if a pre-approval can be granted. With a variety of programs available, let Capital City Home Loans assist you in finding a program that is just the right fit for you.

The Essentials to Qualifying for a Mortgage

Your credit reports and score will act as a huge determination in loan programs and rates available to you. Credit scores below 620 are considered to be subprime in the mortgage industry, while a score of 720 or above is considered quite favorable!

Capital City Home Loans will review your credit report with you and discuss how you may increase your scores prior to closing the loan. Paying bills on time and maintaining low credit balances are important when qualifying. Lenders will also look at a two-year history in three credit lines and your job history. Having a stable job history will indicate that you are capable of making your monthly mortgage payment.

Mortgage down payment requirements will also determine how you qualify for a purchase. As loan programs vary, so will the down payment requirements. The higher the purchase price, the more down payment funds will be required. If funds are limited, you may find yourself choosing a property that will fit better within your budget.

It’s All Up to You

Evaluate your credit report, assets and liabilities prior to your mortgage appointment. You will find that being prepared in advance will help answer any questions related to your loan application and there will be no surprises.

Qualifying for a Mortgage Now

The final analysis is simply this: there are four main elements that are needed to be considered for qualifying for a mortgage, not necessarily in this order.

  • Credit History
  • Job History
  • Assets
  • Income

Know your options when searching for a mortgage. Capital City Home Loans offers an extensive menu of products to best serve your individual needs. Want to know how much house you can afford? Check out ourMortgage Calculators to see just what your payments would be.

For loan assistance, speak with one of Capital City Home Loans’s Loan Consultants today at (855) 754-4339 or apply online at Capital City Home Loans is located in 10 states and several locations throughout the southeast. Mortgage rates are at their best, so get started today!