If I had a dollar for every time someone told me that they didn’t want to get prequalified before seeing a house, or for every time someone just assumed that they’d get prequalified easily because they make decent money....
Getting prequalified to purchase a home doesn’t mean that you just have a decent score, or you have a job, or you make decent money, or you don’t have any credit cards.
Getting prequalified takes multiple things into consideration, such as:
Credit score – Ideally 640 or more, there are some options for less. Debt-to-Income Ratio – 43 percent is the highest I’ve heard of. What is your debt-to-income ratio? Add up all your monthly debt payments and divide them by your gross monthly income. Example: $1,500 Rent + $100 auto loan + $400 rest of debt = $2000, divided by monthly income. Let’s say your monthly income is $6,000: $2,000/$6,000 = 33 percent. NOTE: Social Security, child support, alimony, anything that is money coming in or out continuously, will be considered and MUST be proven. Also money that is unprovable or inconsistent is normally not taken into consideration. Examples may be Uber, side gig of doing nails, etc. Job History – How long have you worked at your job? Usually it needs to be two years or you have to at least be in the same field for two consecutive years if you haven’t been at your job now for the full two years. Even if you aren’t ready to purchase right now, talk to a lender today so you know what you need to work on in
order to qualify if you don’t at this time.
BE IN THE KNOW, KNOW YOUR INFO BEFORE YOU PURCHASE A HOME, YOU’LL SAVE YOURSELF TIME & HEARTACHE!