Buying or Selling a home Can be Stressful! 😵
The Experienced Greetings DMV Sales Network Agents Will Help You Find YOUR Home Or Sell Your House,
So You Have More Money, Comfort, And Achieve Your Goals Throughout The Process.
4 Requirements You Need When Applying for a Housing Loan
Steps to Obtain a Loan Pre-Approval
Getting a loan to buy a home is a huge responsibility, and the best way to remove the anxiety and fear from the process is to be informed about what you must prepare.
Getting pre-approved for a loan is not a guarantee, but it’s part of the home-buying process that can help you ease your nerves and be comfortable finding the best home.
In the video above, I discussed some requirements banks ask for when you apply for a housing loan.
Proof of Income
You’ll be asked for the last two weeks' pay stubs and at least two years' tax returns. If you still need to file your taxes, call your CPA or do it yourself but be sure to do it every year. This increases your chances of getting approved.
Proof of Employment
When applying for a loan, the lender will determine your ability to pay the mortgage monthly. They can look into different aspects of your background, but proof of employment can help your case to prove that you will not go rogue on payments.
Proof of Assets
This includes assets and liabilities, including if you have credit card debt or other loans you’re still paying off. You have to figure out those balances, but here’s a tip:
Only do something with your credit card debt if you have one once you talk to the lender. Paying off your credit card debt may affect your credit in a way you can never anticipate, so talking with a lender first is a better move.
Good Credit
Different loans require different credit scores. Lenders typically look for a credit score of 620 or better for a conventional loan. For an FHA loan, lenders usually look for a credit score of 580 or better.
For other loan programs, lenders will require various credit scores and a lot of different requirements.
But it's not entirely hopeless if you don’t have good credit. If you want to know your options and you’re in the DMV, you can reach me at (703) 346-2776 or Dan@greetingsvirginia.com to discuss what’s available for you.
Identity Verification
Last but most importantly, you’ll need to verify your identity. It would be best if you were prepared with valid proofs of identity such as your driver’s license or social security number. It would help if you had these on hand when you talk to a lender to be ready to apply for a loan and get the best deal.
Who Qualifies for a Loan
Seeing this list, you might immediately think you’ll never qualify. But there are a lot of options that most people don’t know.
Some programs help people with bad credit or no consistent income to get approved for a loan and a home.
If you want to learn more, call me at (703) 346-2776 or Dan@greetingsvirginia.com.
