Are you currently in search of a home? Or have you ever thought about what requirements must you satisfy in order to purchase a new home? Well, in this blog, we’re going to inform you of the requirements that you must satisfy in order to get approved for a mortgage loan.
When determining whether you qualify for a loan or not, the first thing banks typically look at is your income. Truth be told, if the monthly payments on the potential house you are looking at exceeds 28%, you can kiss that house goodbye. If you have good credit though, the banks may allow for an exception of upwards of 44% of your income. Debt is another bridge between you stepping into the door of your new house and being denied. If the amount of debt you have plus the payment on the house exceeds 41% of your income, banks typically deny you. The next deciding factor is the amount of money you plan to put down. This down payment goes towards the cost of the house. The amount of money you put down can significantly impact the monthly cost of the house. I hope you didn’t think we forgot about your credit score. Yes, this is one of the major deciding factors on getting your mortgage loan. Your credit score can not only impact the monthly mortgage payments. But it can also significantly impact the interest rate on the loan. In the long run, having at least a good credit score can save you a fortune! We hope you enjoyed this blog. Stay tuned for more!