Exp Realty
As you prepare for homeownership, it is beneficial to become familiar with requirements necessary to qualify for a mortgage.
Mortgage payments are paid over an extended period and give potential homeowners the ability to find and pay for the home of their dreams. Knowing how to qualify for a mortgage allows you to line everything up to get the funds needed for your desired home.
Even though potential homeowners of all income levels can apply for a mortgage, a few key financial factors can make or break your mortgage loan qualification.
Having a well balanced debt to income ratio demonstrates you have enough funds after paying off monthly debts such as credit card payments, to comfortably afford a mortgage. A ratio of 36 percent or lower is considered most ideal to lenders.
Next, your gross monthly income should be steady and expected to be received for at least the next 3 or more years to demonstrate financial stability. This too demonstrates to lenders you can afford a monthly mortgage payment.
Sometimes, to qualify for mortgage approval, lenders require the loan borrower to put down collateral that can be seized if the loan is not paid back in terms of the mortgage contract. For mortgage loans, the collateral would be the home itself.
As you prepare to apply for a loan, it’s essential to manage your debt which boosts your credit history in the eyes of lenders. Your new home is a large asset, so before applying for a mortgage, consider speaking with a lender near you to answer any questions you may have.
I have been a licensed agent since 1985. My community involvement enables me to offer many contacts to you, the client. I will put you in touch with other professionals in the lending, home inspection, and closing business. My 35 years of experience in the real estate market will make your transaction a favorable one.
My professional designations include Certified Residential Specialist (CRS), Seller Representative Specialist (SRS), Accredited Buyer Representative (ABR), NAR Green Designation, and Loss Mitigation Certified. I have served as committee member and chairperson on many committees at the Greater Manchester Nashua Board of REALTORS and New Hampshire Association of REALTORS and am also a graduate of the Leadership Academy at NHAR. Awards include multi-million dollar producer, REALTOR of the Year, and Good Neighbor of the Year.
