Today we’re going to be talking about, how do you qualify for a home loan in the Appleton, Wisconsin area or any of the surrounding communities? As a first time home buyer you most likely have a lot of questions. My goal in this article & the many others that I have wrote is to provide you with the information that you are seeking. Before I get started, I just want to let you know that I have created a video library for all your questions about the home buying process, the home selling process, how to pick a real estate agent and so much more. Feel free to check that all out or give me a call or text with questions. 920-252-2864
Steps to Qualify For a Home Loan
The first step in this process is to reach out to a mortgage lender. Nowadays, everything can be done online. You submit your application online. You submit documents online. Unless you really want to, you will never need to physically meet with the lender. The mortgage industry has done a great job streamlining this process for both residential sales & refinances.
You might be wondering, well who would you recommend? I personally would recommend Jesse Koch from Inlanta Mortgage. They have several different loan options & offer good rates. The link to his online application is here >> Online Application
Once you submit your information he will tell you if you can qualify for home loan or if you cannot. If you currently qualify he’ll give you a call to go over what all the mortgage info means & let you know what type of mortgage program would best fit your scenario.
Criteria For Qualifying for a Home Loan
If you do not qualify for a loan, he can generally point you in the right direction on what steps you need to do in order to qualify.Some of the factors that dictate if you qualify is your debt to income ratio, so how much income you have coming in, versus how much you are paying out each month. How much liquid cash do you currently have to use as either a down payment or to over monthly expenses. I would recommend having at least 2-3x your down payment amount & enough cash to cover 6-12 months of mortgage cost to be on the safe side. Your credit score, generally speaking, it needs to be at about a 650 or higher or a 630 or higher. There’s some loan programs that are less strict that allow more flexibility on credit score. They also take into consideration any past foreclosures, bankruptcy, & judgements against you in court. Then you have your job security, how long have you been working in your job, the income that you’re making off of your job. Normally with W2 employees, it’s fairly simple to qualify for a home loan. However, with commission-only jobs it can be a little bit more difficult, meaning that they have to go off an average of two years income.
Let me Give you an Example. As a real estate agent, I could not purchase a home for two years after getting my license. Why is that? A typical lender requires you to have an average of 2 years tax returns because it is a commission only style job. They want to make sure you are bringing in similar income each year.
Start Your Home Search Today
Please feel free to reach out if you have any questions or concerns on the content above. Or if you are interested in starting your home search process fill out the form down below or give me a call or text on my cell phone, which is (920) 252-2864. I hope you guys found this content valuable. If I can do anything to help, just please reach out. Have a great day.
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