First-Time Homebuyer Mortgage Checklist

The following first-time homebuyer mortgage checklist will help get you started on the road to your new home because the primary thing you need to focus on is qualifying for a mortgage, since youll need to know how much house you can afford. Being pre-qualified also shows sellers that youre serious about finding your new home!

Income

• Qualifying Income Must have 2 years of income history to qualify
  • W2, self-employed or 1099 employee NOT bonus
  • Self-employed? Net income = Qualifying income
  • Not self-employed? Gross income = Qualifying income
• Rental Income Must have 2 years of rental income history to qualify
• Other forms: Social security, commission, car allowances, child support, interest and dividend income. Be sure to see a mortgage professional for additional forms that may qualify.

Credit

• Different loan programs have different requirements
  • FHA Loans: Can be approved with a credit score of 580
  • Conventional Loans: Requires a credit score of 620 Most lenders require a 640 credit score
• Good credit profile = Better rates Anything over 740 is considered excellent
• Factors that weigh on your credit score: Payment history, outstanding credit balances, credit history, debit/credit ratio, type of credit, and inquiries.

Assets

The following assets may be resources for your down payment and must be verified by your lender:

• Savings/Checking account
• IRAs, thrift saving plans, 401(k) and Keogh accounts
• Stocks and bonds
• Savings bonds
• Gift funds
• Sale of personal property
• Downpayment assistance programs
• Sale of real estate
• Collateralized loans
• Disaster relief grants and loans
• Employer assistance programs

Approximately 5% of your down payment must come from the buyer on conventional loans.

Employment

• Employment history of at least 2 years
• Education counts as history
• Self-employment must be greater than 2 years by the same business

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