7 Steps to Qualify for a Home Loan in California

7 Steps to Qualify for a Home Loan in California.

It's a good idea to put a plan in place to qualify for a home loan before you start looking at homes.  Who wants to shop for the perfect home, only to find out that you don't qualify for the loan.  Any good REALTOR will not show you homes without knowing how much you qualify for.  There are things you can do to improve your odds of qualifying for a reasonable loan based on your family's income.

7 Steps to Qualify for a Home Loan in California

1. Set a reasonable goal.  Sit around the table with your family to come up with a maximum monthly amount you can devote to a loan payment, taxes, insurance and maintenance.  Your lender can also help you determine the maximum loan amount you would currently qualify for.
2. Check the status of your credit report.  You should check your credit report one to two times a year  even when you are not trying to qualify for a home loan.   Look for any errors in the way your payments and credit lines are being reported.  You also want to be sure you are not a victim of identity theft, where someone else is using your name to get credit.
3. Make your financial situation clear to your loan officer.  Explain any future improvements to your financial situation, such as a raise or new source of income.
4. Develop a plan of action to save money for a down payment.  How much can you save each month and how long will it take you to save enough for the down payment?
5. Eliminate debt. Pay down credit cards, sell a car or trade down to a cheaper car.  Not only will eliminating debt give you more money to spend each month, it improves your credit rating.  Most lenders require a minimum 620 credit score to qualify for a home loan.
6. Talk to your loan officer about other funding options to consider.  If you are a Veteran, you may qualify for a Veteran's Administration loan without a down payment.
7. Start out with a less expensive home.  Find a home in need of remodeling or a smaller home than your ideal home.  While living in this home, you can save money and prepare to trade up to the home you really want.

The steps to qualify for a home loan can be made easier with the assistance of a loan broker.  If you or someone you know is interested in purchasing a home in the next two years call Unyque Financial for a free financial analysis.  There are many time sensitive forms of alternative funding that you may qualify for.  We don't know how long these programs will be around but we are approving people everyday.