How to Qualify for a Primary Mortgage

It seems that mortgage lenders, like auto insurance brokers, are in a class by themselves. But, like everything else, shop around for the best mortgage rate. Some mortgage lenders offers better deals than others. If you have poor credit and don‘t qualify for a primary mortgage, you can still qualify for a subprime mortgage. But due to terms like higher a interest rate and upfront charges, it would be wise to wait until you are in a better position in the way of credit history and income to see a mortgage lender about a primary mortgage. There will always be plenty more “that’s the one” homes and properties available. Here are ways to qualify for a primary mortgage.

• Wait a minimum of two years if you have a bankruptcy and a if you had a foreclosure, wait a minimum of 3 years of the finalize date.
• Most mortgage lenders will require a minimum of 1 year with no late payments on a credit report. A simple explanation of a minor late payment if this is the only thing on an excellent credit report. Keep in mind that loans or credit card accounts usually only appears on a credit report if a payment is 30 days or more late. Also to verify timely payments, mortgage lenders will sometimes check with landlords for applicant’s payment history for the last 2 years.
• Make sure you are caught up on student loan payments if you have them. A government guaranteed student loan that is in default is a fast way of getting disqualified. If your student loan is in default, a repayment schedule can be renegotiated and after a year of showing timely payments again, the defaulted loan might not disqualify you.
• Collections on any account status must be repaid before qualifying for a mortgage loan. Also any court ordered judgments must be paid in full or caught up like in child support payments.
• If you are self employed or on a commission based income, with a few exceptions, you’ll need to provide two years of steady income, usually in the form of Federal Income Tax payments for the last two years.
• Provide your mortgage lender with overtime or bonus pay. These can be used as "qualifying" income if you have a history of this kind of pay from your current employer for at least one or two years. Also two years of income from a second job or a history child support. Newly reward child support payments will not qualify.
• Be sure that you are not being sued or going through a pending divorce when trying to qualify for a primary mortgage. A mortgage lender can not approve you until these situations are settled.