Restrictions have tightened over the years, making it tougher for people to qualify for home loans. Anyone who is considering purchasing a house soon needs to be prepared. Below are four things mortgage companies in Jacksonville Beach want potential buyers to know.
Prepare to Put Money Down
Well-qualified buyers might be eligible for no-downpayment loans, but most people will find that their lender wants them to have up to 20% available for a downpayment. People who have more than 20% have an even greater chance of getting the best mortgage rates and qualify easier.
Clean Up the Credit Report
While buyers don’t have to have spotless credit histories, if there are collections, judgments, bankruptcies, or other high impact negative factors on the report, get these taken care of before applying for a mortgage. Although this might push your timeframe for buying a house back several months or longer, people will find the application process is much easier when their credit scores are higher.
Work History
Mortgage companies look at applicants’ work histories because they want to have the assurance that the applicant has a stable job. Anyone looking to finance a home loan should be careful about changing jobs to close to when they apply for the loan.
Debt-to-Income Ratio
This is closely related to cleaning up one’s credit history. Negative marks aren’t the only red flags for a mortgage company. High debt-to-income ratios make lenders nervous, so try to pay off as many credit cards and lines of credit as possible before applying.
To learn more about what mortgage companies in Jacksonville Beach consider when qualifying applicants, contact the Mortgage Lady Team – Fairway Independent Mortgage Corp at https://themortgageladyteamfairway.com.
