getting qualifiedLenders use the following criteria to qualify an applicant for home financing.
- the home appraisal:
your home construction value must have a market value that secures the financing.
- your credit rating:
your credit rating must be above a certain score in order to qualify. The lower your credit score, the less likely your financing request will be approved.
- your housing debt (housing ratio):
the debt that you will be incurring on your home must be around 28% of less of your total gross income. Lenders are less likely to approve mortgage loan debt that exceeds this ratio. Lenders will expect you to pony up more down payment in order to get the housing debt to 28%.
- your capacity to repay (income ratios):
your total debt (including your housing debt) must be around 36% or less of your gross income in order to qualify. The more debt that you have compared to your income may disqualify you from financing.
- your employment:
lenders qualify applicants who are employed and have steady income.