How to Get Qualified for a Loan

How to Get Qualified for a Loan

Buying a home is a huge step in any person’s life. It takes a lot of research, preparation, and planning to smoothly get through the process. If you need a home loan, you’ll first need to get qualified. Everyone that wants to get a home loan must be deemed qualified to borrow. The qualification criteria varies depending on the loan you need, and it’s possible to be qualified for some loan programs while not being qualified for others. Each program requires different documentation and background information but the core factors are generally the same:

1. Income

Most of the time you’ll need to show proof of income. This is most often your work pay, although we can usually also use other forms of income like retirement/pension, alimony, child support, disability, and others. While income is important, it’s not necessarily make or break, as there are programs out there for people with low income.

2. Employment History

You will also probably need to provide your employment history. Many programs prefer borrowers that have been at their job for a while, though that’s not always the case. There are loan programs that allow for recently started jobs. No matter your situation it’s always best to talk to professionals like us who can help suggest programs based on your needs.

3. Credit

Credit is another important factor in terms of loan qualification and will come into play further along the process as well. Again, your qualification doesn’t hinge on any one of these criteria, so it’s important to remember that even if you don’t have great credit, we may be able to help. Don’t let bad credit stop you from at least seeing what your options are.

4. Down Payment

Your down payment is the amount that you personally put towards paying for the house. Loan programs all have different requirements, but most require you to at least pay for a small portion, though some require larger amounts. Still, many programs and lenders offer down payment assistance for buyers without a lot of cash on hand.

With all this in mind it’s usually best to get your ducks in a row early. While being qualified is necessary, getting Pre-Qualified before you start looking for homes is best. Then you know what you can afford, and when you find the right house the seller will take your offer seriously if they know you’re backed up by a lender.
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