When buying a new home, you ' ll need to be approved for a new home loan through a lender, or ask the seller to finance the home for you. Before applying at a lending institution, research your options. Determine how much " house " you can afford. Use online mortgage payment calculators to figure what the payments would be for different home loan amounts. Then, you ' ll know what price range you can shop within, and whether or not you can afford the payments. Remember, your income / debt ratio must fit within the lender ' s guidelines to qualify for a conventional loan.
Healthy and " Not - so - healthy " Credit Scores
If you have an excellent credit score, then your income / debt ratio along with the investment capital you have available will be the main factors in determining home loan availability. However, if there are flaws in your credit history due to non - payment or repossession, you will be limited in the type of home loan you can obtain. But don ' t lose heart. Many homebuyers whose credit is " not - so - great " do qualify for non - prime loans. Non - prime loans can be a bit higher - priced than prime loans or have higher interest, but you might still be able to buy your dream home!
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