How does a lender determine if you qualify for a home loan?
The prospect of buying your first home is really exciting. It’s also a complex process that becomes simplified when you partner with USC Credit Union. We will provide you with the education and guidance you need to buy your first home with confidence. You can learn more by downloading our Free Home Buyers Guide.
While lenders look at a lot of different information to determine whether you’ll qualify for a home loan, ultimately, it comes down to four things: credit, down payment, income, and assets. If any of these areas are not as strong as they should be, don’t be discouraged. Your USC Credit Union home loan expert will provide you with the guidance you need to move to the next level.
The minimum required down payment for a conventional loan is typically 5 to 10 percent, depending on the lender. However, USC Credit Union offers a special first-time home buyer loan program that requires only 3 percent down. If your loan amount exceeds 80% of the value or purchase price, you will be required to have private mortgage insurance.
checking or savings account. Lenders may also want to see proof that you have a “financial cushion” to
handle emergencies or unforeseen expenses.
Download our Free eBook to learn the ins-and-outs of the home buying process.