Today's lending guidelines lead to a lot of different things that could potentially get in the way of a home purchase. However, there are 2 primary reasons for why most people think they can't achieve this goal; down payment and credit score.
While these two variables are most definitely things that could hold you back from a home purchase, they may not be not be as daunting as you think. Meeting with a lender early on in the process can help you determine very quickly whether you're ready for this milestone or if you still have some work to do. By analyzing your credit report, a lender will be able to determine what types of loans you might qualify for as well as what the down payment and credit score requirements are for those loans.
We all know that saving money isn't always the easiest task. It requires a lot of discipline and determination; just like home ownership does. Depending on the type of loan you're looking to qualify for, the amount you need to save for a down payment will vary. In some cases, you may qualify for "zero down" loans, meaning you don't have to have a down payment at all. Always be sure to ask your lender if there are any loans with zero down options and determine if you qualify.
Credit scores play a huge role in the overall mortgage qualification process. Often times, credit can be confusing to interpret and sometimes seemingly impossible to establish or fix. Asking your lender what loans you can currently qualify for and what you might qualify for with an improved credit score is definitely recommended.
Whether you have a lot of work to do to improve your credit or just a few things, a wrong move could set you back considerably. Credit isn't always as intuitive as it mays seem. TruPath Credit can help you analyze your report and give you a unique road map for home qualification based on what is found on your credit report. You may be surprised that some situations aren't as daunting as they may seem.
If you're a first time home buyer, there are many options out there in regards to down payment and credit score requirements. Be sure to review this with your lender early on to set an accurate expectation for yourself.
