My Real Estate Blog

The first step to take as a potential home buyer is to get pre-qualified for a loan. This helps both you and your lender learn just how much home you can afford. And you should begin this process before you even start looking for a home.

Here are the Basics:

• You'll need a steady employment history, at least two years with the same employer.

• Consistent or increasing income over the past two years.

• Credit report should be in good standing with less than two thirty day late payments in the past two years.

• Any bankruptcy on record must be at least two years old with good credit for the two consecutive years.

• Any foreclosure must be at least three years old with good credit for the past three years.

• Mortgage payment qualified for must be approximately 30 percent of your total monthly gross income.

Pre-qualification for a home loan typically costs you nothing, but gives you both a goal of what homes are in your affordability range, as well as how much money you should look to have saved for a downpayment, you can hardly wait to take this step.  If a lender asks you for a credit card number or some sort of payment up front, RUN!