Credit Score ► Between 620-720 (580 if you are a veteran or service member). Remember that 720 is an A+ score even thought the score goes up to 850. All those extra points are like likes on Facebook. They just make you feel good, they don't affect your interest rate.
The underwriting software 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.
