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.
Check These 4 Items To Help You Qualify For a Home Loan
1) Your Credit
Your credit is one of the most important things that will be considered when determining if you qualify for a home loan. Your credit history is the way a lender judges the likelihood that you’ll pay back your home loan. The lender will look at the length of your credit history, how reliably you’ve paid on your accounts and if you’re maxed out on your. Credit scores for a home loan range from 620 (low) to 850 (high). A healthy credit score is generally considered to be above 740 and a poor credit score is below 600. The higher your credit score, the better the interest rate you’ll likely be offered.