Qualifying for a Mortgage
Here are a few things to consider when you are seeking a mortgage loan.
LATE PAYMENTS: Most loan guidelines require a at least 1 year with no late payments on your credit report. Some exceptions apply, if credit is otherwise exceptional. A payment is late when it is 30 days or more past due.
BANKRUPTCY: If you have a bankruptcy in your history, you must wait 2 years after the discharge date to be considered for a loan.
FORECLOSURE: If you have a foreclosure in your past, you must wait at least three years after it is finalized to be considered for a home loan.
DEFAULT STUDENT LOANS: If you have defaulted on student loans, it will disqualify you from getting a mortgage. Exceptions may apply if you are following an agreed payment plan.
COLLECTIONS: Any account in collection status must usually be repaid before you can qualify for a home loan.
JUDGMENTS: Court ordered judgments must be paid in full. Court ordered child support must be caught up and current.
SELF-EMPLOYMENT AND COMMISSION-BASED INCOME: Self-employment income and commission income that has been received for less than two years will not qualify as income for a mortgage loan. Exceptions do apply.
OVERTIME AND BONUS INCOME: Overtime and bonus pay can qualify as income for the purposes of the loan if there is a solid history of such payment from your employer of at least one year.
LAWSUITS OR PENDING DIVORCE: If you are involved in legal actions, a mortgage loan will generally not be granted until the lawsuit is settled.