We had the privilege of speaking with our mortgage partner, Jenny Orozco, of AmCap Home Loans to learn what 3 things a lender is looking for when pre-qualifying you for a home loan.
“First, it is very easy for anybody to get a loan.
The structure of the loan is basically: credit, income, assets. So those are the three things we’re going to be looking for.
This is very important. We’re going to look at your FICO* score and it is going to determine which is going to be the best loan program for you.
Don’t be afraid of the FICO score. We’re going to run your credit to learn what your score is and then we’ll look at all the monthly liabilities of debt in your credit report. This is so we can learn your DTI (debt-to-income ratio) that you have at this moment.
Then we’re moving on to income.
We need provable income for a full 24 months. You can provide taxes or W2s to show this. We’re going to review the most recent pay stub to verify your income.
If you’re self-employed, we’ll need to look at two years of tax returns to verify your income.
Then lastly, we look at assets.
Assets are how much money you have saved in order to buy the house. This is needed to cover the down payment (depending on your loan program) and the closing costs.
These are the three things we’ll be looking at and considering when approving you to purchase a home!”
If you have more questions for Jenny or questions for our team, let us know and we’ll be happy to help!
*A FICO score is a credit score created by the Fair Isaac Corporation (FICO). Lenders use borrowers’ FICO scores along with other details on borrowers’ credit reports to assess credit risk and determine whether to extend credit.