It’s getting easier to qualify for a home loan however it does help to have basic knowledge qualifying for a mortgage loan. This takes away the stress of can I or can’t I qualify for a loan. It is possible to qualify for a mortgage or refinance your home with home mortgage Tucson. Even if your credit is not perfect there are things that you can do to help you qualify to get that lower rate on your dream home.
Again your credit score does not have to be perfect in order to qualify. Establishing a credit history and good payment history is very important. If you have a late payment on your credit report don’t worry, but you should make sure that you have do not have any late payments reported in the last 12 months. You also want to look at your credit utilization, if you are using more than 50% of the available credit on one credit card I recommend paying down the balance.
Solid proof of income is just as important as your credit score. You’ll have to prove to Home Mortgage Tucson that you have the ability to repay. Generally underwriters will look at your last 2 years of income history. They are looking for steady income and employment history with no gaps. In order to prove your income you’ll need 2 months of pay stubs and your previous 2 tax returns. Your income will be used to determine your debt to income ratio. Your minimum monthly payments should not exceed 44% of your income. Any loan payments as well as alimony or child support payments reduce your qualifying monthly payment.
You should know which type of loan and the term that you want. Each loan has its own qualifications and requirements for down payments. There are also many loan terms that are available such as 15, 20, or 30 year loans. For example FHA loans require at least a 3.5% down payment, while a VA loan requires no down payment but is only available for 15 or 30 year terms.
Finally, talk to your loan officer at Home Mortgage Tucson, and let them know your goals – why you want to refinance or what you’re looking for in a mortgage. They are there to assist you and will help you determine the best loan.
