Bad Credit Blues

Can You Qualify For A Home Mortgage?

Many people think this is a good time to purchase a home, especially when interest rates are low, the government has incentives for some buyers, and there is plenty of housing inventory. If you rent now, you may also want to look at this article: Should you rent or buy a home. We also have a rent vs. buy calculator online.

How Much of a Mortgage Do I qualify For?

This question is very important. It is, of course, important to know how much lenders will let you have to put towards a house. It is also important to weigh that against the homes that are available in your area, your needs, and of course, what you really need in a home.

Lenders have different rules about the value of the loan vs. your income and other obligations.  However, you can get some guidance from our home loan qualifying calculator here.

Establish Your Income

Now that you have a ballpark amount in mind, it is time to get your ducks in a row. Of course, it is important to establish your income because this is the basis for your ability to make payments.  Lenders may want to see your income tax returns for a couple of years, pay stubs, or some other form of income proof.

Examine Your Credit Report

Beyond that, it is a good time to run a credit report to see the same data that lenders will look at. Can you pay off a credit card or reduce your bills in some other way? Maybe your credit report has errors, and you need to fix them. Online credit report services can help you fix your credit report.

Learn more here: Fix Your Credit and Keep More Money

Now you should have a better position to negotiate a mortgage payment. There are lots of programs out there to help people move into their own house, and don’t assume minor financial problems will kill your chances.