03/27/2024
The most common question I get from people interested in purchasing a home for the first time is: What do I need to get preapproved for home loan?
While there quite a few things, the top 3 things on your list should be:
1. Credit Score: Your credit score plays a crucial role in the preapproval process. Lenders use it to assess your creditworthiness and determine the interest rate for your mortgage. A higher credit score generally indicates lower risk to the lender, which can result in better loan terms. While specific credit score requirements vary by lender and loan type, a good credit score (typically above 670) can help you qualify for competitive mortgage rates.
2. Savings: Lenders will evaluate your savings and assets to ensure you have enough funds for a down payment, closing costs, and reserves. The down payment amount varies depending on the type of mortgage, but having a larger down payment can lower your monthly mortgage payments and may even help you qualify for a lower interest rate. Additionally, having savings set aside for unexpected expenses and emergencies can demonstrate financial stability to lenders.
3. Employment History: Lenders typically look for a stable employment history to assess your ability to repay the mortgage. While specific requirements vary, having at least two years of continuous employment in the same field or industry can strengthen your mortgage application. However, lenders may consider other factors such as education, training, and future earning potential when evaluating employment stability.
I am ready and available with preferred lenders that I can introduce you to, to get your journey to homeownership started.
Niasia Boykin, Realtor®️
Master Keys Realty Group
[email protected]
609.422.9501