Basics for Prequalifying for a St. Louis Home Loan
Are you thinking about buying into the American dream of homeownership? Before you jump the gun, but sure that you have all of your affairs in order as there are a few essential actions to take that can help you prequalify for a loan.
Steady employment history – Lenders are more likely to finance your loan if you have proof of stable employment. Constant work history also demonstrates that you will likely have a reliable income. You mortgage payment should be around thirty percent or less of your monthly income.
Good credit report – To prequalify for a loan, it is best to have an excellent credit report. We know not everyone has an impeccable credit score, however, so many lenders will allow no more than two late reported payments. If you have filed for bankruptcy, you must have nearly two years of good credit.
Tax information – W2s and federal tax returns can help you prequalify for a loan, so it is important to have that information at the ready when applying.
Loan prequalification is not a binding contract with a lender, but it does give you a head start and it lets sellers know you are serious in your home search. If you are in the market for a new home, contact USA Mortgage to get prequalified today!