How Do You Qualify For A Home Loan?

Generally speaking, you must meet the following criteria to qualify for a home loan. Mortgage company guidelines vary from company to company. There are some exceptions-consult with a mortgage lender.

1.) You must have had steady employment for the last 18 months. If you are retired or disabled, a monthly income is required. There may be some exceptions allowing you to qualify with less time on the job.

2.) All of your monthly bills must be current (paid within 30 days of the due date) with no late payments for the past 12 months.

3.) No bankruptcy in the past 24 months (Chapter 13 reorganization is an exception).

4.) No foreclosures in the past 36 months.

5.) No unpaid judgments, collections, or liens against your name.

6.) If you are a student, you must show some employment history along with schools transcripts.

7.) Must have sufficient funds to close. Gift letters are acceptable for funds.

In summary, you must be a good credit risk for the lender. One thing to keep in mind is the lender will be loaning you a large amount of money for a long period of time and they want to make sure you are a good risk for repayment of the loan.

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Today's Rates

Mtg Loan Rate APR
30-yr Fixed 4.63% 4.67%
15-yr Fixed 4.07% 4.14%
1-yr Adj 4.04% 4.06%
* national averages
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