Credit Tips to Qualify for a Mortgage

Quick credit tips from Zillow will help you determine if you're ready to apply for a mortgage loan.With mortgage rates at historic lows, it is tempting to buy a new home or refinance right now. But will you qualify? Here are some quick credit tips from Zillow to help you see where you fit in.

– Your credit score should be at 620 or above.

– Your credit cards should carry a balance no more than 30% of your credit limit.

– Lenders look favorably on borrowers who have held the same job for two or more years.

– Your loan-to-value (LTV) ratio should be 80% or less. Loan to value is the ratio of the amount of money you want to borrow versus the actual value of your home. A down payment of 15 to 20% will help lower your LTV.

– If you’re self-employed, be sure to report your Schedule C income.

– Don’t transfer money between bank accounts during the mortgage qualification process. It adds extra documentation to the process.

– Plan to show a lender two years of tax returns and W-2s, bank statements and pay stubs.

Still have questions? Give me a call at 206-391-0388. I can help you or refer you to a local mortgage lender that I know and trust.

 

Additional source:  Lending Tree

 

About Marti Reeder

I am a full-time, full-service REALTOR® for John L. Scott, Kent-Covington, Washington. Serving primarily the South Puget Sound, my goal is to provide my clients with first class service and to make the home buying or home selling process as simple as possible.

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