In order to qualify you for a fixed-rate mortgage, we will look at your financial background to determine whether you have a manageable level of debt, steady income, and good credit history.
Debt-to-income ratio: We will review your debt-to-income ratio (DTI) to ensure you don’t have more debt than you can manage on your income. A recommended DTI, including your mortgage payment, is no more than 43%.
Steady income: Whether you’re self-employed or have a W2 job, we want to ensure that you have a stable work history showcasing your likelihood of being able to afford your home now and in the future. Two years of consistent employment are typically required to qualify for a home loan.
Credit history: Your credit score is a significant indicator of your financial responsibility. We will review your credit history and credit score to determine whether you have a financial background that suggests you will be able to manage mortgage payments. Learn more about what constitutes “good” versus “bad” credit here.
Down payment: For Listerhill’s conventional 25 & 30-year loans, a down payment is required no matter your credit score. The more you put down, the lower your interest rate. The “sweet spot” is 20%. This provides you with valuable equity in your home for future cash-out refinancing or home equity loans.
While we look closely at these factors to help you qualify for a mortgage, we also realize your financial situation is unique. We will review your full profile and speak with you directly to help you find a loan you want and can afford.
