| One of the biggest steps a person can make in their | | | | Credit History |
| life is buying a home. You finally get to have a place | | | | Have you been more than 30 days late on anything, |
| that is yours and you can do what you want with it. | | | | any bankruptcies, judgements, etc.? Do you have at |
| Decorate the inside and outside to your hearts content. | | | | least four lines of credit that are at least 2 years old? |
| While you consider the various prospects that would | | | | These will have an impact on your first time home |
| make the perfect home for you, you should also | | | | buyer qualifications so make sure you have a good |
| consider what the first time home buyer qualifications | | | | credit history. |
| there are. It would be a shame to find that perfect | | | | Credit Score |
| home and then not qualify to buy it! | | | | Today everything is based on credit score. So you |
| Below are a few basic first time home buyer | | | | might as well find out what your scores are. It is also a |
| qualifications you should meet: | | | | good idea to get to know what your middle score is |
| - Job History | | | | since lenders loan money based on this. A middle |
| - Credit History | | | | score of 700 or above is excellent. Anything below |
| - Credit Score | | | | 700 you need to work on especially in this market. |
| - Rent History | | | | Rent History |
| - Money saved for down payment | | | | Lenders want to see that you are paying your rent on |
| | | | time. If you have a mortgage, they will look at how |
| The specific qualifications vary from loan product to | | | | timely are those payments as well. A very important |
| loan product. The five basic qualifications above you | | | | first time home buyer qualifications are 12 months of |
| must meet before you can even start the loan | | | | rental payments made on time. |
| process. Here is a breakdown of those five: | | | | Money Saved for a Down Payment |
| Job History | | | | Most first time home buyer qualifications will require |
| You must have at least two years at the same job to | | | | 10-20% down for conventional loans. Although there |
| start the process of buying a home. If you change | | | | are some that only require 3% down. So make sure |
| jobs during those two years, you should be able to | | | | you have some money saved or investigate grant or |
| show it was to improve your situation. For example, | | | | down payment assistance programs to help. |
| you may have been working at a convenience store | | | | Once you have these first time home buyer |
| while attending college and then obtained a job in your | | | | qualifications in place, you're ready to go find that |
| area of study. Don't have a lapse of time between | | | | perfect home with confidence. You shouldn't have a |
| jobs of more than two months. That would show you | | | | problem meeting the individual loan products |
| made a step-up in your work experience. Even going | | | | qualifications either. |
| to school can be considered part of your job history. | | | | |