Family finances: What mortgage lenders are looking for
Know what it takes to qualify for a home loan!
The three main considerations according to the articel link below, are:
Are you a good credit risk? Do you pay your credit cards and bills, on time? Your FICO credit score is calculated based on the debt you have, and how you handle your revolving credit lines and debt.
Are you able to make the monthly payments? Can you pay them, each and every month, on time, without having to borrow from friends or family? Does you income more than cover it?
And, what is the value of the home you are trying to purchase? Does the lender think it is worth what you do? Or what the Seller is asking? They will send out an appraiser, who will help them determine if the loan you want is justified by the value of the house.
To see the full article, click the following link:
Family finances: What mortgage lenders are looking for
By Patricia Mertz Esswein, Kiplinger's Personal Finance Kiplinger's Money Power
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