Your Ultimate Guide on Basic Mortgage Loan Requirements09/05/2019
Most individuals at one point or another have dreamed of owning their first house. Everyone has their version of the perfect home. And for most, they would have already spent time checking on different houses they want to own someday? But do you have to wait that long to have your own home?
At present, there are many Mortgage loans Corpus Christi, TX you can choose from. Taking out a house is not as tricky back in the 1900s when mortgage loans didn’t exist yet. Nowadays, you can even get approved in a matter of days as long as you have all the requirements.
If you are set on owning a house, then better stop wasting money on expensive rent and start preparing yourself to own a home. There are many requirements when it comes to mortgage loans, but the essential element is the same for all kinds.
Firstly, you need to have a job or an established business. Lenders will require you to have a steady and stable source of income. After all, how are you going to pay for your mortgage if you don’t? And you have to know that mortgage loans are one of the most significant investments you can take. They also make the most extended terms to pay; it is usually at around ten to thirty years.
For most lenders, they will require you to be with your current company for at least two years. But there are also those with less strict requirement wherein you can have different companies over the last two years as long as it is with the same industry.
Your financial statements are an essential requirement when taking out a mortgage loan. The lender will need to know your monthly income. They will also take into consideration your expenses and other payables. Furthermore, they will check on your bank and credit card records to see how your cash flow is. Therefore, it is not a good idea to have a zero balance or a negative balance on your account. You have to make sure that you are diligent in establishing your credit card payments too since it is also a basis for approval. If they see you are handling your finances well, and you have the other requirements even at a minimum, you have a bigger chance of getting approved.
Your credit report is a precious asset for you in many financial dealings. Having good credit means easy approval for mortgage loans. You will have to balance both your score as well as your reports. Most lenders need a score of at least 640. But, be prepared since some require 680 minimums. If you want a lower score requirement, try to go for government-insured loans, they often ask 580 only. You also need to take care of your credit history. Remember, one lousy rating will stay there for seven years.
You will rarely see any lender that does not require any down payment. Most require at least twenty percent of the total cost of the house. However, we recommend you try to put as much as you can on down payment so you will have a lower principal.