How Do I Qualify To Buy A Home

This is a question that I'm happy to answer because many buyers have no clue what it means to be qualified to buy home. Lending institutions have become more strict and buyers have to prove their financial worth. So in this article I am going to lay it out in plain simple english.

**I am begging you to share this article in with everyone you know that may be thinking or are already out looking to buy a home. I need help spreading the word so people can get educated.

If you’re a buyer it’s crucial that you understand what you need before you go out shopping for a home. A mortgage broker may tell you to improve your credit, save more money for a down payment, closing costs, or you need more income. Nothing is more disappointing than doing all that work to find a home and then you have no chance of getting it.

I meet people that put more time into researching the shoes or power tools their going to buy. They take time to search online or even walk malls to compare prices, brands, features, etc. So why should a home be any different and it's a way bigger puchase. Makes sense huh?

So below are some things you should be aware of before you believe you can purchase a home:

- Income – This means that you have to show proof of income with paystubs and a job verification letter. Please understand that even if you have money hidden under your mattress or you work off the books, the lending institutions do not care and considers that money invisible. You have provide documented proof of a paycheck or if you’re self-employed you must supply bank records and tax records.

So what is considered income? Income is an amount of money you usually receive on monthly basis. A job of course, social security, pension, retirement, alimony, child support, etc. Consult with your mortgage broker about any other types of income.

How much income you need will depend on the price of the home.

-Steady Employment – In New York, the banks want you to have at least two years of continuous employment with no gaps (there may be exceptions). So if you’re thinking of changing your job and or field you may want to wait after you have made your purchase. Consult with a mortgage broker in your area.

-Tax Forms and W2’s - Lending institutions require that you have the last two years of your tax forms and w2’s.

- Credit – Your credit requirements will depend on the type of loan you are applying for such as F.H.A, SonyMae or a conventional loan. But the higher your credit the better your interest rate will be and you increase the chances of getting your loan.

-Down Payment – Yes, the dreaded down payment that haunts all home buyers. In this market the banks and the sellers expect you to leave a down payment when you sign your contract. Your down payment will depend on the type of property, purchase price and loan requirements.

-A Great Agent – This is not a requirement, just a suggestion. But in today’s market it is highly recommended that you use an experienced agent to help you along the way. Buying a house in this market involves more details because of lender requirements. Let an agent represent you during the process and help to resolve any problems that may arise.

*I found a great source that is excellent for helping you know what to be aware of during your home buying process called, the Home Buying Defense guide. This ebook that you can download right ow covers everything you need to know to protect yourself and your finances and to help you make smarter buying decisions. Click here to check it out now!

**I am begging you to share this article in with everyone you know on Facebook and Twitter that may be thinking or are already out looking to buy a home. I need help spreading the word so people can get educated about becoming qualified.

*Did this article help you find out if you're qualified to buy a home?