“When doling out home loans, lenders are looking for telltale signs as to whether or not you will be able to make your payments,” says Boren. While these signs vary, Boren notes that the five key things lenders look for are as follows:
- Steady employment
- Down-payment capabilities
- Good credit
- A consistent savings history
- Steady spending habits
- Frequent job changes, especially those without salary increases
- Recent self-employment in a new venture
- Bad debt or credit history
- No previous borrowing record
Remember that not all credit is good credit. Additional credit cards, even those never used, can work against you. “This is because those credit cards are looked upon as being open credit lines—and while they have not been used, they could be used, and potentially used up to the maximum dollar amount allowed by the credit card companies,” says Boren. As a result, their perceived risks lower your credit, or FICO, score.
When looking for the right lender, treat the ordeal as you would the house hunting process itself. Don't stop looking after one, compare rates, and don't settle.
For more real estate information, please contact RE/MAX of Boulder, Inc. at philboren@gmail.com, 303-441-5647, or RE/MAX of Boulder, Inc..
Phil Boren is a 26-year veteran real estate Broker and Realtor, specializing in consulting with buyers and sellers in Boulder, CO and along the Front Range of Northern Colorado. Held Real Estate Broker's license in Texas, California and Colorado; Managing Broker for over 200 agents and Brokers for Century 21 and RE/MAX franchises. Award-winning Realtor with experience in management, sales, marketing, relocation, appraisal, REO, BPO's, foreclosures, short sales; previously held the MAI designation from the Appraisal Institute. Experienced in both residential and commercial real estate and achieved the No. 14 individual ranking in the 5-state, Mt. States Region for RE/MAX International in 2001, based on sales volume. Received my BSBA in Finance and Real Estate from the University of Arkansas in Fayetteville, where he was a 4-year starter and 4-year football letterman for Hall-of-Fame coach, Lou Holtz.