4 Key Factors Lenders Typically Look at
Credit
Conventional loans require a minimum score of around 620. Generally, a higher credit score results in better terms and lower interest rates, which can save you tens of thousands of dollars over the life of the loan.
FHA/VA loans have options for credit scores as low as 500, but generally you want to be above 580 to maximum some of the benefits of these loans.
Cash reserves
Typically, lenders will check whether you have enough for a down payment, closing costs, as well as extra funds for emergencies.
We offer mortgages that require little or no down payment, but you’ll still want cash reserves to cover unexpected expenses.
Debt-to-income ratio
This number compares your monthly debt payments to your monthly income. Lenders usually want to see a DTI below 36%, but many programs can work with a higher number if you have a high credit score or a large down payment.
Employment history
Lenders typically look for a steady job history, usually for W2 income at least two years in the same field or line of work will be needed.
If you’re Self Employed employee, you may need more documentation and your income will be calculated differently.