You Can Qualify for a Loan!
How do you qualify for a loan? Your credit report is probably the biggest factor in the kind of loan program we can offer you. When we run your credit report, we see your credit history, credit inquiries, and your FICO score. A FICO score is a credit score developed by Fair Isaac & Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills.
Banks and mortgage companies look at the middle FICO score (not the average score, just the middle score). A mid-FICO of 680 or above is considered good. Over 720 is excellent, and over 780 is in the "walk on water" category... The higher your credit score, the better loan you can get.
We also look at your credit history - late payments, particularly on mortgages can be a challenge. Of course, Bankruptcy or certain types of credit repair can be a challenge. But not an insurmountable challenge - it just means we work with lenders who may not offer the best rates.
Most lenders want to see no more than 45% of your gross income (before taxes) going to debt - including all credit cards, mortgages, property tax, car payments, etc. But we work with lenders who have higher limits. And, these days, most lenders want your income to be documented with tax returns or W-2's.
And, most lenders want to see some amount of "reserves" - money in a savings or retirement account, in case you need it to pay your home mortgage. Two to six months reserves are the norm, but there are exceptions to this, too.
This information offers you typical loan qualifying information. As I mentioned, if you have excellent credit, a high salary with excellent employment history, you will get the best rates and the best loans.
We do our best to work with our many lenders to find the right loan for you!