How to Qualify For A Mortgage

Home ownership exemplifies the American Dream... and with a home usually comes a mortgage. Most of us cannot buy a home without one. Qualifying for that mortgage will decide if we can buy that home or not. Of course, there is an ideal candidate for mortgage qualification. Most of us do not fit the profile of ideal. But there are a few things we can do to help bring us closer to the ideal profile.

Instructions

Difficulty: Moderately Challenging

1. The ideal candidate will have at least 20% of the purchase price in savings waiting to put it down on the house. Needless to say, most of us don't....and that is ok... but the more you have the easier it will be to qualify. Even a small amount in savings will look good to the underwriter.
2. The ideal candidate will have credit cards... and not use them. Underwriters look carefully at how much of your credit you use.... 10% is an ideal amount. If you use 90% it is not good... so pay those cards down as much as possible before you apply.
3. Late payments.... they hurt you. Make sure you have had no late payments on anything, even utilities for one year prior to your application.
4. Years at your current residency helps... 3 years is good.
5. Years on your current job is very important. Three years on your job makes you look stable. This counts.
6. Total income vs total obligations. This is a very important ratio. If you have a lot of bills... work hard to pay them off or down before you apply for your mortgage. Get a second job. Do what you need to do to get rid of those bills.
7. Large purchase obligations. Postpone those large purchases... a new car.. furniture.. jewelry.. put them off until you move into your new home.
8. These tips will raise your credit score and raise your chances of getting that mortgage. It will be hard work, especially if you have to go for that second job, but it will be worth it. You will get a better mortgage at a better rate to better enjoy Your American Dream.
9. Enjoy
   
   Angel