The Three Pillars To Owning A Home
When purchasing a home, the 3 main things that your lender will review are income continuance, debt load, & credit score.
Income Continuance - Lenders will review your job history & any other sources of income and determine if they are "likely to continue". In most cases W-2 income from an employer is fine. You can run into some hurdles on things such as dividends, capital gains, child support , & alimony. Learn the best local options specific to your unique scenario by clicking Lean More button above.
Debt Load - This is when a lender will pull a copy of your credit report and determine a debt to income ratio using the liabilities that will show up on a credit report. These include credit cards, student loan, automobile loans & other installment loans. This does not include car insurance, cell phone, groceries, etc. Learn the best local options specific to your unique scenario by clicking Lean More button above.
Credit Score - You credit report will contain a credit score form all 3 credit reporting repositories. Equifax, Transunion, & Experian. Your lender will use the middle of these 3 scores as one of the factors determining the risk & interest rate on your mortgage loan. Credit scores can range from 300 (Very Poor) - 850 (Excellent). Learn the best local options specific to your unique scenario by clicking Lean More button above.
