Mortgage Jet’s Mortgage Blog

Everyone wants to buy a home, but not everyone will qualify for a mortgage loan. To get a mortgage, you have to demonstrate to the bank that you are a good risk. The bank is there simply to make money on your loan. If they have reason to believe you will not be profitable, you will not qualify for most conventional loans.

Have a Down Payment

A down payment demonstrates your seriousness about the home. If you have a large down payment, it can make up for some poor credit because if the bank forecloses, they are still coming out ahead. Though there are some no-down-payment mortgages available, most lenders require anywhere from 3 to 20 percent of the total price of the home.

Financial History

Most mortgages require a thorough review of your credit. This will include your credit history as well as your credit score. Credit doesn’t have to be perfect, but it does have to be mostly positive information. If you don’t have any credit history, get a car loan or a few credit cards and establish a history of paying on time before applying for a mortgage. If you have any unpaid debts, pay them as quickly as possible. Check your credit report for any debts you may not have been aware of.

Your Income

You will need to have an income that is 2-3 times your expected mortgage payment. Use an online mortgage calculator to find out what your payment will be. In addition, you should have held your current job for at least two years. Some lenders are flexible on this point as long as you have been working in the same field for that length of time.

Other Mortgages Available

There are other mortgages on the market for people who don’t meet these requirements, but there is a steep price to pay for them. The interest rates and fees are usually much higher for these loans. Some loans don’t require any verification of your income or your employment history, but you will still have to have a good credit history.

If you have trouble finding a bank that will give you a mortgage, look for a mortgage broker to help. A mortgage broker, in return for a fee, finds mortgages from among dozens of lenders- or more. This can be extremely helpful in finding a loan when your credit is less than optimal or you anticipate trouble with getting a mortgage loan.