Will You Qualify for Your First Mortgage?

Qualifying for Your First Mortgage

If you’re a first time home buyer, you might have the jitters about qualifying for your first mortgage (don’t worry—we all did!). We understand how daunting the whole process can be, and we appreciate your nervousness…after all, there are frequently stories in the news about the tight lending environment and credit score minimums. Yikes! Let’s clear up some of these misconceptions:

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First things first. Your ability to qualify for your first mortgage (and the amount you may qualify for) is largely based upon your debt-to-income ratio and your credit score. Your available assets (for example, the number in your checking account) will also be taken into consideration.

The minimum credit score depends on the type of loan you wish to secure. The two major types of loans are FHA and Conventional, and the difference is that FHA is government-insured and a bit easier to obtain. FHA loans require 3.5% down, and typically require a minimum credit score of 620.

Alternatively, conventional loans typically prefer credit scores in the 700s or above, and require a 5% down payment. They’re a bit more difficult to obtain, but they generally offer “better terms for better buyers”.

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We specialize in helping first time home buyers here at EveryHome, and we’d love to help you, too! We have a great team of lenders waiting to assist you on your first mortgage, and it’s a lot easier than you think (the first step is purely verbal and takes just a few minutes over the phone). Send us a no-obligation e-mail at theoffice@everyhome.com and we’ll help you get started!