Credit Score ► Between 620-720 (580 if you are a veteran or service member). They will look at your credit to see that you have at lease 2 open accounts on your credit that are each open for longer than 1 year.
Down Payment ► There are programs to help cover the down payment and closing costs in each state. If you do not qualify(most folks do qualify), expect to save at lease 3-3.5% for the down payment & closing costs.
Debt to Income Ratio ► Have a debt-to-income (DTI) ratio of 43% or lower.
Income ► Have a stable income and 2 years of consistent employment history.
Documentation ► Your income, employment, and debt. This includes bank statements, pay stubs & tax returns.
Pre-Approval ► Get pre-approved for a mortgage loan from a lender listed on your states down payment assistance website. Ask about any and all assistance programs you may qualify for, as well.
Homeowners Insurance ► You will have to have homeowner insurance. If your home is in a flood zone, you'll also need flood insurance as well.
What is a "first time home buyer"? This term is often missused and confusing → In short you cannot have owned a home in the past 3 years → You are a stay-at-home or single parent who jointly owned a marital home in the past three years with your spouse; or → If you have not solely owned a marital home or solely or jointly owned any investment or second properties.
