Before obtaining a home loan, it’s a good idea to get your financial life in order. Lenders tend to look at specific items when it comes to selecting loan recipients. You will benefit in the loan process by understanding what will make you a desirable candidate for a mortgage.

What Lenders Look for When it Comes to Qualifying You For a Home Loan

What Your Employment History Tells Loan Officers

Mortgage loan officers look favorably on those with a solid work history and consistent employment. Along with your income, a person who can keep a job or remain within a specific industry is seen as stable and employable. The amount of the loan you qualify for will heavily depend on how much of an income you have.

Why Your Credit History Matters

Lenders will pull your credit history to get a better picture of how you’ve handled debt in the past. Their primary concern is qualifying you as someone who will pay back the money you borrow, along with interest. If you have a less than stellar credit history, have defaulted on any loans, or you’ve declared bankruptcy, you’re likely to qualify for a higher interest rate. Try to never use more than 30% of your available credit, as you will be seen as a risk.

How Your Existing Assets Come Into Play

A lender will check to see if you have any other assets of value. In the event you default on your loan, they want to know that they will get their money back regardless. Assets including automobiles, 401ks, and other retirement accounts all qualify as assets of value in your lender’s eyes. The more you have to back you up, the more likely you are a desirable candidate for a home loan.

If you’re in the process of shopping around for a home loan, it’s a great idea to speak with a mortgage professional to get a sense for what will qualify you for a low-interest rate. Dan Main at Dan Main Mortgage has been providing quality home loans to the community of St. Peters, Missouri for over 20 years. Whether you’re a first time home buyer, or you’re looking to refinance, Dan is known for his excellent customer service and extensive knowledge on the mortgage industry. Call him today at (636) 284-4144, stop by the office at 201 Salk Lick Rd, St. Peters, MO 63376, or visit his website for more information. 

Dan Main: NMLS # 502036
Flat Branch Home Loans NMLS # 224149
947 Waterbury Falls Dr
O’Fallon, MO 63368
This is for informational purposes only and not an offer to lend or extend credit.