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Getting Qualified:Start With a Good Credit Rating |
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Applicants with a good credit report will be in a stronger position to negotiate best rate and terms
The report can be a factor in a lending institution's decision to approve or decline your loan application.
You need a credit history of at least one year to ensure a good credit report.
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Getting Qualified:Check Your Credit Score |
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Do you know your FICO credit score?
FICO Scores 700 and up
FICO Scores 600 to 699
FICO Scores 500 to 599
FICO Scores 499 and Less
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Getting Qualified:Qualifying Income Ratios |
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Your capacity to repay the loan is an important factor for lending institutions to qualify an applicant for a loan.
Lenders use two debt ratios
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Getting Qualified: Having an Appraisal |
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The appraisal sets
a value to the asset that may be used to
secure your loan
Lenders will not extend you a $200,000 loan to buy a house
Many lenders qualify loan amounts at 80% LTV,
There are some loan products that allow lenders to lower the 80/20 rule
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Getting Qualified: Check Your References |
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Having
a Good Reference or Secured Job Gives Lenders
the Confidence That You Will Pay Back Your
Loan
Lenders will likely call your employer to verify your employment position and salary/wages.
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