Will I Qualify for a Home Loan?

Posted by on Monday, July 16th, 2012 at 8:16am.

Thinking about taking advantage of record low interest rates and rock bottom prices of homes for sale in metro Atlanta? One of the first and biggest questions asked by buyers is: Will I qualify for a home loan? Because of the stringent guidelines set forth by many of today’s lenders, this is not only a common question, but a realistic question, as well.

Will you qualify for a home loan? Although the answer to this question will ultimately depend on the lender and their minimum qualifications, there are a number of things you can look at to better determine whether or not you will qualify for a traditional mortgage in today’s home loan market:

• Down payment – Do you have money saved up for a down payment, or will the sale of your current home be enough for a down payment for your new home? Although the total down payment amount required by a lender will vary according to the home loan program for which you qualify, generally speaking, you can expect to be required to put down about 20 percent of the cost of the home as a down payment. For example, if you plan to purchase a home that costs $400,000, you should be prepared to put at least $80,000 down, either from your cash reserves, from the sale of your current home or both.

• Credit score – Here’s a biggie. Your credit score, in the eyes of a lender, is more important than ever. Consider that your credit score is determined using a number of factors, including your payment history, the type of credit you currently possess, and your debt-to-income ratio. If you feel uncertain about any of these factors, it is probably best to order a copy of your credit report and review it before applying for a home loan. Again, lenders will vary according to their minimum qualifications when it comes to credit scores, but you should aim for achieving a score above 700.

• Income – You must have the income to support the home loan and the home loan amount for which you are applying. It is best to talk to a lender regarding this topic and to get preapproved for a home loan so you know how much home you can afford.

Need help or have questions? Give us a call at 404-842-1555 to speak to a professional Realtor who can help you find your next home.

5 Responses to "Will I Qualify for a Home Loan?"

Comparing Fixed and Adjustable Rate Mortgages | Real Estate Industry Blog wrote: [...]one of the most frequent mortgage questions asked by buyers is – Will I qualify for a home loan? Not too long ago buyers were also asking if they should consider an adjustable-rate-mortage.[...]

Posted on Monday, July 16th, 2012 at 11:16am.

Realhomesestate wrote: I'm sure that these things will give knowledge to those who will loan and ask themselves if they really qualify or not. Informative post. Keep it up Tina.

Posted on Tuesday, July 17th, 2012 at 5:41am.

Chris Adams wrote: You have enumerated 3 very important factors before one even consider buying a home. Unless, you have a VA loan like all military personnel can avail with 0% downpayment, buyers really need to have atleast 2 of these 3 factors to back up their buying plan. Great article Tina!

Posted on Tuesday, July 17th, 2012 at 11:19pm.

Mike Woods from Indianapolis wrote: Something else that many first-time borrowers don't realize is that it is important to not take on any significant debt beyond the debt that was on your credit report at the time your loan application was approved,as this can mess up your debt ratios.

Posted on Wednesday, July 18th, 2012 at 3:24pm.

Will I Qualify for a Home Loan? | Mortgage wrote: [...]a number of things you can look at to better determine whether or not you …
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Will I Qualify for a Home Loan?



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Posted on Thursday, July 19th, 2012 at 9:48pm.

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