What does it take to obtain a home loan in today’s highly regulated environment?

Although the process of getting a home loan may seem very overwhelming at first, working with the right lender can make it significantly better. It’s important to find the right combination of past experience and current expertise in dealing with the challenges of today’s market.  So what does it take to get a home loan these days? To make it simple, I like to break it down into the following four characteristics lenders look at to determine eligibility for a home loan.

1. Sufficient Income

In general, your house payment and other monthly obligations should not exceed 43% of your gross monthly income. However, 43% is a general guideline not a hard and fast rule, and since the calculation of income and obligations can be subject to interpretation, you should give me a call to review your individual situation.

You can use this simple calculator to determine your general debt-to-income ratio. Debts should only be included in the total if they carry a consistent monthly payment.

Examples: Car loan, Student loans, Credit card debt, Alimony or Child Support, etc.

This should only be used as a rough estimate. For a more in depth analysis, please give me a call so I can review your specific scenario.

(952) 838-8774 or lkuyper@summit-mortgage.com

2. Job Stability

The length of time in your business or in your profession is an important consideration. Your source(s) of income should be stable and ongoing. Variable income is acceptable as long as there is sufficient history. Often times, potential buyers with unique income situations such as those that are self employed or work on a contract basis are told they can’t qualify for a home loan by other lenders and banks, when in fact they can! This is where working with an experienced lender that constantly stays up to date with current products and guidelines is so important.

If you’re unsure how your specific employment situation can affect your ability to qualify for a home loan, give me a call today for a complimentary consultation!

3. Adequate Funds for Down Payment and Closing Costs

Down payment requirements vary according to the loan program. At Summit Mortgage, we offer a wide range of national and regional products to fit your needs, from little or no down payment, to high value jumbo options. As your Loan Officer, it’s my job to help you prepare for a successful home loan transaction including having adequate funds for closing. For a simple comparison of typical down payments and closing costs, please use the link below.

If you have additional questions regarding down payments and closing costs, please don’t hesitate to call me today!

(952) 838-8774 or lkuyper@summit-mortgage.com

4. Acceptable Credit History

Your credit history is very important as it can not only affect your loan approval, but also how low of a rate you can qualify for. If you have questions regarding your credit score and how it affects the home loan process, you’re not alone!  This is one of the most common questions potential buyers ask.

Please call me with any specific questions regarding your credit. For additional information about credit or credit scores visit www.myfico.com.

To schedule a complimentary consultation to determine if you qualify for home financing, please give me a call today or fill out the simple form on the right.

I look forward to speaking with you soon!

Direct: (952) 838-8774
Cell: (612) 750-9128
Email: lkuyper@summit-mortgage.com

NMLS# 333768

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