Getting pre-qualified to buy a house might be a lot easier than you think. Speaking with a local lender is one of the best ways to determine your home buying power. As a lender that has closed more than one-billion dollars in mortgage loans, Perennial Funding has the experience and the resources to determine if you can qualify to buy a house.
When you seek a mortgage pre-qualification, a loan officer will ask about your recent payment history with your landlord, payments to credit card companies and about payments to your other monthly creditors.
Credit tip: Pay your rent and your other bills early or on time. If you are consistently paying certain bills beyond the due dates, you might incur late fees that could be used to pay down other bills or toward your savings to buy a house.
Also, a late payment fee from a creditor might not eliminate your opportunity to buy a house.
While a credit card issuer might charge a late fee when your payment is a few days late, mortgage lending guidelines will only count the debt as a late payment if the delinquency reaches 30 days past due or more.
Therefore, you should make sure that all of your creditors are paid within each calendar month.
According to the FICO website, the average national FICO Score was at 700 or above in April of 2017.
With a FICO Score that is more than 100 points lower than the national average, you might still be able to pre-qualify for a home loan.
Review Your Sources of Income
Be ready to share details about your payroll earnings with your loan officer. Generally, you will need two years of related work experience.
Your tenure does not require two years with the same employer, however, you may be asked to explain any large employment gaps during the preceding two-year period.
Also, informing your loan officer about any forms of non-traditional income that you are scheduled to receive for several years or more could be instrumental in getting pre-qualified to buy a house.
Make a Note of Your Debts
Prior to inquiring about a mortgage loan pre-qualification, conduct a quick tally of your debts.
Knowing the approximate monthly amount that you spend for rent, credit cards, auto payments and other bills that are reflected on your credit report could enable your loan officer to perform a more accurate evaluation of financial situation.
Checking Your Savings Account
Check recent account statements from your savings account, checking account, retirement accounts and other liquid assets. Having an idea of the amount that you can apply toward a down payment and closing costs will be helpful information, too.
Your days of renting a place to live could be reduced if you are qualified to buy a home.
Reach out to Perennial Funding today at (888) 826-4856 to get in touch with a licensed mortgage professional.