How to Qualify for a Mortgage

How to Qualify for a Mortgage

If you hope to get the best mortgage rate possible, you’ll need to make sure that you are well-qualified. Below are some of the key criteria that mortgage lenders evaluate, as well as some tips you can use to improve your current standing.

🔸Credit Scores
The higher your credit score, the lower your mortgage rate

🔸Employment and Income Stability
Mortgage lenders prefer candidates that can prove steady employment for at least the past two years

🔸Debt-to-Income Ratio
Measures the total of all of your monthly minimum debt payments, plus your proposed new housing payment, divided by your stable monthly gross income.

🔸Down Payment
Since mortgages are price adjusted based on risk factors, a loan with 3% to 5% down is considered higher risk than one with 20% down, and will  carry a higher interest rate.

🔸Cash Reserves
The standard requirement for cash reserves on a mortgage is two months – You must have enough liquid cash after closing to cover your new mortgage payment (principal, interest, taxes, and insurance) for at least the next 60 days

Once you’ve positioned yourself for the best mortgage rate, it’s time to comparison shop. Don’t know where to begin? Contact me and I will connect you with a few good lenders.

​​​​Shenita D. Perritt, Realtor®, SFR® 

Bennett Realty Solutions 

Licensed in DC, MD, & VA 

Residential & Commercial Real Estate Services

Short Sales & Foreclosure Specialist

Office: 301-459-5040 |  Mobile: 202-664-2841​

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Author: Shenita Perritt
Phone: 202-664-2841
Dated: November 20th 2020
Views: 49
About Shenita: Shenita is a licensed commercial and residential real estate professional in the District of Columbi...