When potential homebuyers are looking to be approved for a home loan, there are a few questions and concerns I often receive.
“What about my credit score? My money saved? My down payment? Will I even be able to afford the monthly payment?”
How do these factors affect your chances of approval? Today, you’ll find your answers. You will typically need:
- Employment by the same company for at least two years
- $4,000 to $6,000 in savings
- A credit score of at least 620
Let’s say you can only check off the first two boxes. There’s no need to worry, as banks can often provide you with a conditional loan approval. With this, you’ll have time over the following months to work with your banker, raise your credit score, and eventually be issued your home loan.
We have partners at Tabor Mortgage who are more than happy to tailor a plan for your personal financial situation. They’ll put you on track toward homeownership—determining how large your home could be, what you can afford, what your down payments and interest will be, and ensuring you receive a safe, fixed-rate mortgage. You will find out exactly what you can afford.
Do you have extra money saved to go toward a down payment? This is a compensating factor, which may mean you can lower the requirement of a two-year concurrent employment.
These scenarios create many different outcomes—a mixture of down payments, monthly payments, credit scores, and time employed influences how much of each factor is needed for home loan approval.
There’s no one-size-fits-all answer, but if you have two out of three, there are definitely options for getting approved. If you have any questions or need more information, feel free to contact me through phone or email. I look forward to helping you.