How to Qualify for a Mortgage: Establish Credit, Set a Budget and Save

Planning ahead is a key step in ensuring a good home-buying experience and learning how to qualify for a mortgage.

Since most prospective homeowners use a mortgage to buy a home, it's important to consider the three main areas lenders consider before they see you as a qualified mortgage borrower:

Credit

Housing payment history, credit card and installment debt payment history and credit score are all taken into consideration in reviewing your loan application. A history of regular, on-time payments demonstrates creditworthiness to a lender.

Capacity

Your ability to make monthly mortgage payments is determined by the amount of your total debt weighed against your income. Funds from sources such as bank accounts, stocks, bonds, mutual funds, or gifts from family members are taken into consideration when exploring your capacity to afford a down payment and closing costs.

Collateral

To secure repayment of the mortgage to your lender, the property you purchase will be used as collateral. The property and its value must be acceptable to the lender.

If you're ready to maximize your home-buying potential, choose from one of our easy prequalification methods:

 

Have questions first? Call us toll-free at 1.888.321.FUND. One of our experienced loan consultants will be happy to answer any questions you may have about qualifying for a mortgage so that you can make the best decision to fit your unique financial situation.

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