Qualifying for a Home Loan

 

We all have that dream house that we covet to live in. If we are lucky, we might get to buy it before we are reunited with our ancestors. If you have a good job and a steady income, it might take you a while, but you will eventually buy that house out of your savings. However, not everyone is that fortunate. Some people must borrow money from lending institutions or their close rich friends to buy their dream house. They later have to deal with the headache of paying back the money.

 

If you are a low-income earner and it is your first time buying a house, you will need guidance on how to achieve this. However, the most important thing is getting the money to buy the house. Thus, your best bet is to get a loan, not for starting a business, but for buying a house. Since such loans come from big institutions, they must conduct background checks on the loan applicants to see who qualifies and who fails. Nevertheless, how do you know that you will qualify for a home loan?

 

The most basic thing that they will start with is your credit score. For you to qualify for a home loan, you must have a clean and high credit score. If you are the type of person who accumulates debts on credit, and then you disappear, you will most likely fail. However, you might be honest and have a clean background, but your credit score still remains low. Do not despair. There are FHA Loan Houston institutions that can still grant you a home loan.

 

You must have a positive disposable income. This will give the VA Home Loan lenders assurance that you can pay the loan if you qualify. If you have never determined your monthly disposable income, then it is high time you get a pen and paper and begin the calculations. It is not complicated. Just subtract your monthly expenses like rent, food, water bill, electricity, gas, insurance, cell phone, etc. from your monthly income. A negative one means you spend more than you earn.

 

Having a steady job that you have held down for more than 2years increases your chance of qualifying for a home loan. If your record shows that you keep jumping from one employer to another, you can say goodbye to the home loan. You must also provide bank account records that date more than 2years back. If you have other part-time jobs, you might want to put them on record since they give you an added advantage. Be sure to check out this website at http://www.ehow.com/how_4816141_payoff-mortgage-years-less.html for more info about mortgage.