What if I’ve had credit problems?

Your credit history is only one factor in qualifying for a loan, and having made some late payments doesn’t have to keep you from buying a home. Someone who has consistently made payments on time in the past may have more financing options than someone who has not, but that doesn’t mean a mortgage is off-limits if you’ve had credit problems.








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What does it mean to get pre-approved?

Getting pre-approved means you receive a loan commitment from your mortgage company before you have found a home, based on a review of your credit and finances. Having your credit pre-approved shows sellers that you’re a qualified buyer and helps you establish a clear price range. The process is the same as a typical mortgage application, except that your application doesn’t include property information.

What will a lender look at when I apply for a mortgage?

Lenders consider many factors in evaluating your loan application, but they usually focus on four areas:

Income and debt. How much money you make and what other bills you have to pay helps the lender determine whether you can afford to make mortgage payments.

Assets. The lender needs to make sure you have enough money to cover the costs of buying a home.

Credit. Whether you’ve met other financial obligations helps the lender predict whether you will repay your mortgage.

Property. The home you want to buy has to be worth enough to act as collateral for the mortgage.

by http://www.greatmovesbygmac.com/