What Do You Need to Do to Qualify for a Mortgage?

When you’re buying a house for sale in Northern Florida, there are things you need to do to qualify for a mortgage – but wht are they, and how can you get all your ducks in a row before you apply?

In order to qualify for a mortgage, you need to have:

A good-enough credit score
Stable income
A down payment, in most cases

Your Credit Score

Lenders consider a credit score “good” if it falls between 700 and 759. It’s “fair” if it’s between 650 and 699.

The higher your credit score is, the better rates lenders will be willing to offer you – but if it’s too low, you’re likely to be turned down as soon as the lender pulls your credit report.

Check your credit report before you apply for a mortgage. We’re all entitled to one free copy each year, thanks to the Federal Trade Commission. You can get yours here.

Stable Income

Lenders need to see that you’ll be able to repay them, so one of the first things they look at is your employment situation. You need to make enough money and have a stable job. Typically, lenders want to see that you’ve had the same job for at least 2 years.

Down Payment

As a general rule, lenders want you to come up with a 20 percent down payment to buy a home. But if the home you want to buy is $200,000, that means you need to save up $40,000 – no small feat! Fortunately, there are programs that allow you to put down less than 20 percent. Just remember that if you do put down less than 20 percent, your lender will most likely require you to buy private mortgage insurance, or PMI. Also, the more you borrow, the higher your monthly mortgage payments will be.

Are You Buying a Home for Sale in Lake City?

If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.

In the meantime, check out the most popular Lake City home searches by exploring the links below.

What Do You Need to Do to Qualify for a Mortgage?