Home Mortgage Basic Qualifications

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Whether you are a first time home buyer or have purchased many homes in your lifetime, the minimum qualifications that lending institutions require are the same.
These are typical guidelines, however they may be flexible depending on the situation. Check with myself or your loan officer.

All of these qualifications exist so the lender and the borrower can examine if the borrowers are in strong financial standpoint. The banks, government, city, and myself, don't want to put a home owner in a position where they struggle to pay the monthly mortgage payment and are left without money for everything else.

 Qualifications for buying a home
Employment History: The first sign that somebody is ready for the responsibility of a mortgage payment is that they have stable work history for at least the past two years. For the duration of those two years, if you did happen to change jobs, the jobs should be in an alike industry. Note: If you have been going to school, and have just recently entered the work field, your time spent in school counts towards your 2 years of experience in that industry.

Employment Outlook: Can you make a case that you will continue working and earning the same or more amount of money each year, for the next 3 years?

  •      If you live on a fixed income (SSI, Disability, Retirement, etc.), you have to prove with official documents what your projected income is for the next 3 years. For example - somebody living on Social Security Income will have to provide their income award letter showing the income is expected to continue. 

Credit Report: At least two trade lines on your credit report. This means two open/active accounts like a credit card, car payment, home mortgage, or any other account with a balance you are paying down or is a line of credit.

Credit score: Each loan program has minimum credit guidelines. As you might expect, the higher your credit score, the better you appear as a borrower to the bank, and therefore the better rate you will qualify for. A better rate equates directly to a lower monthly payment. The moment you even consider the idea of buying a home, halt all other thoughts and purchases of buying a new car or buying something else with credit. Anything that involves having your credit pulled for a purchase should be avoided before buying a home. This is why....

Debt-to-Income: The amount in monthly payments you have, relative to how much you make a month, will decide how much you can spend on your housing payment each month. Myself or your loan officer will ask about what debts you pay for each month, and compare that to your gross monthly income, for an idea of what is affordable for your situation.

Give me a call, or send me a text when you're ready to talk about your situation and home buying plans!

Maverick Johnston 江马克
509-230-0768
NMLS ID #1668965





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