Am I Qualified to Buy a Home?

To see if you qualify for a mortgage answer the following questions:

• Do you have a steady source of income as reflected on your tax returns?
• Do you have money saved for a down payment, closing costs and reserves?
• Have you been consistently employed for the last 2 years and is your current income reliable?
• Do you have an established credit and rental history that a lender can review?
• Have you paid all your bills on time for the past 12-months especially your rent?
• Do you have minimal outstanding long-term debts like car payments, student loans or child support?
• Have you resolved any open collection accounts, charge offs, judgments or tax-liens?
• If you owe back child support or have defaulted student loans have you been making consistent on time payment for the past 12-months?
• If you have had a Chapter 7 Bankruptcy has two years passed since the discharge and, have you otherwise rebuilt and maintained you credit?
• If you have had a Chapter 13 Bankruptcy, has it either discharged or have you made 12 consecutive on time payments to the Bankruptcy Trustee?
• If you have had a foreclosure has three years passed since the sale or the claim was paid?
• Do you have the ability to pay a mortgage every month, plus additional costs?

If you can answer, “yes” to these questions, you are probably qualified to purchase a home. If the answer to any of these questions is “no” then you may still be able to purchase a home however with less desirable terms such as a higher interest rate and/or larger down payment. If you answered “no” to too many of the questions, then you may not be able to purchase a home at this time and should concentrate on improving those areas that are lacking. Either you can work to resolve these issues on your own or you can seek professional help. Either way, it is in your best interest to resolve any issues and purchase a home.