Buying your first home?
The three most important things that we evaluate for a home loan are:
We want to give you the best possible chance of success when taking on a mortgage for a new home. Credit is an extremely important part of assessing this success. We need to see a good credit score - typically higher than 620 is needed – but, we always say there’s “more than the score”. Usually we want to see a good, on time credit history from at least the last 12 months.
If you are not “credit ready”, then we want to get you ready! CSE offers products and services that could help build or repair credit. We’ve helped hundreds of people over the years improve their credit and get positioned for home ownership.
Most mortgage loan programs require a down payment (VA loans do offer our eligible veterans 100% financing). The FHA loan requires only 3.5% of the purchase price for down payment, while conventional mortgages typically require between 5% – 20%. We will also want to view bank statements to verify that sufficient down payment and closing cost funds are available. You may be able to borrow from your 401(k) or IRA. Eligible family members can contribute a “gift” for down payment and closing costs; be sure to speak in detail with your loan officer about how this works.
Income and job stability are important. For mortgage loans, we evaluate your current income plus your income over the past two years. If you have not been on your current job for at least two years, alternatives such as schooling or training are looked upon as positives, as is moving to a newer, higher income job.
Use our Mortgage Calculator to see how much home you may be able to afford.