Are you thinking about buying a home, but you are afraid you have bad credit and will not be approved for a loan? While credit does play a part in home financing, home lenders take other items into consideration before you get approved.
- Tax returns for the last 2 years-Helps determine your income
- Pay stubs-Must have a steady job with an income to pay back the loan
- Your ID-Verify your background to make sure you do not have fraudulent charges and you say who you are
- Bank and Savings Statements-Shows your spending habits of funds going in and out of your account. Big amounts may need to have a gift letter if they are used for purchasing property
- Living history-May verify or ask further details on where you lived
- Credit-Checks your past ability to off debt and how likely you will pay the bank back
Rates are still at an all time low, so curious buyers should speak to a lender for home ownership advice. Look at the rates that one mortgage lender provides. You can now afford a bigger home because it costs a buyer less to purchase. Now you know a Realtor to help you purchase a property, and give you references for a lender.