Do You Have What It Takes To Get The Loan?
When looking to get pre-approved for a loan, there are many factors to consider so you get the lowest interest rate possible for your mortgage. Here are the minimums you should consider when applying for a mortgage:
The minimum down payment most lenders accept is between 5%-10% for conforming loans, and 10%-15% for conforming jumbo loans.
The minimum credit score accepted is between 620-660, with FHA’s minimum is 580-670 depending on your state. But to get the best rate, you want to aim your score to be higher than 720.
You will also need to prove your ability to pay your mortgage. This is based off your ratio of debt to income. You will need to provide the following:
Pay stubs from the past 30 days
W-2 Forms from the past 2 years
Bank, Retirement and Investment Statements from past 60 days
If you reach the above, you will most likely get pre-approved for a mortgage, however, keep in mind these are the MINIMUMS and to lower your interest rates or prevent yourself from getting into a bad financial situation, make sure you take some time to save up money for the down payment and repair your credit score if necessary.