The most important tools to buy your house.
Your Credit: Your credit score is vital when acquiring any loan, especially the mortgage, that score ranges between 300 & 850. Lenders require levels above 600 to consider lending to someone, but the higher the score the better it is the interest rate and the better the conditions, there is the importance of conserving and taking care of credit, not falling behind on card payments, car debts, and other loans.
In the credit report, it appears not only the score (Score) but also all the outstanding debts or not and the payment behavior and if there were arrears or collections in the last 7 years.
Before applying for a mortgage loan, it is essential to make sure that your credit is at a good level and if not, hire specialized agents in this matter and to clean it up and work on raising the points to acceptable levels.
Your Job: banks want to see the monthly income and job stability of the mortgage applicant if you have a good income but you do not have the stability you will not be a good candidate, and if you have job stability but your income is very low you do not qualify for the loan, it is important that you have both, although if you keep the same job for at least 2 years, you consider yourself stable despite having changed companies or employers.
Your taxes: in the same way, banks want to corroborate income and payment commitments through your annual tax return, it shows your employer, your annual income and expenses, and how much you have left after all. To qualify for a home loan, the applicant or (applicants) must have a free balance between (30% and 40%) of their gross income for housing expenses, including mortgage payments, interest, property taxes, insurance, and condominium, this varies according to the program and the amount of the initial and especially according to your credit score (number 1), hence the importance of consulting your mortgage advisor before making your statements, he may have some recommendations for your accountant to prepare your tax returns properly to help you qualify more easily.
Your Real Estate Advisor: now that you have these three tools in hand, you are missing perhaps the most important, a good advisor, who with his experience helps you improve your credit, puts you in contact with financing experts and specialized accountants, and Above all, it will help you get the house of your dreams.