first time home buyer bend oregon

If you ask any Bend Oregon Realtor or Mortgage Broker they will tell you that the requirements for qualifying for a home loan in 2014 have changed but thankfully even though it may be more difficult to get a home loan in this day and age compared to 2006 for example it’s not impossible.

Credit Score

The core and most important thing that you must have when applying for a home loan is a credit score that’s between 580 and 640 because, any credit score lower than this means you will have a harder time finding a lender who is willing to offer you a mortgage loan.

What’s great about applying for a mortgage loan in 2014 is you have more options available to you and even if you have a lower FICO score you could still qualify for an FHA loan so hope is still out there for you.

Job History

Lenders want to see stable employment histories of 2 years or more because, job stability means you will be more than likely able to make your mortgage payments on time and not fall behind.

Although lenders want to find people who have stable employment histories they will also consider income from other sources like social security, self-employment, income from your investments and proven income from child support.

Down Payment

Although most Realtor’s and brokers will tell you that you have to put down 20% to get into a home that’s not always necessary because, you could choose a loan option which doesn’t require you to put any money down like USDA-RD or a VA Loan.

You can also choose an FHA loan (3.5% down payment) or a conventional loan (5% down payment).

Ability To Repay – The Key To Qualifying For A Home Loan

Last of all, but most important, one of the top guidelines for qualifying for a mortgage loan in 2014 is you have to be able to prove that you have the ability to repay your mortgage loan.

Your recurring debt (car loan, credit cards or student loans) must not be 43% of your gross monthly income because, a higher debt-to-income ratio means you will have a harder time paying off your mortgage loan.

For all of your Real Estate needs contact me today by calling (541) 383-1426 or click here to contact me through my website.