Are you ready to buy a home?

Purchasing a home will probably be the largest single purchase you ever make and should be done with great care. CCCS of South Texas offers pre-purchase homebuyer counseling to help you develop a sense of what is affordable on your budget and discuss credit issues.

Here are some standard characteristics lenders look for when lending money to a first time buyer.

Do you have a steady job history?

Having a steady job and showing responsibility over time relating to employment will help build your case to the lender to approve your loan. Most mortgage companies want two years of continuous experience unless there is an explanation you can provide in writing.

Do you pay your bills on time every month?

The lender will order a credit report to see a detailed listing of how you pay your bills and what debt you may owe. They are looking for consistent paying history as an indication of how you would pay your mortgage payment each month.

Do you have a credit history?

The credit reporting agencies will have a file on how you have paid your credit obligations for the last seven years. This history helps lenders determine credit worthiness for a mortgage. If you don’t have a credit history, you can still qualify for a mortgage with some help from your lender. Copies of rent payments, canceled checks and utility payments can help qualify for a “nontraditional” credit history.

Do you have money saved for a down payment?

The average down payment can range from 3% to 5% of the purchase price depending on the type of loan you qualify for from the lender. Not only will you have to have a down payment but also extra money for closing costs. These costs include taxes, insurance, and credit report fees just to name a few. Sometimes a property seller is willing to pay part of your closing costs.

If you are considering purchasing a house contact CCCS of South Texas we can help with pre-purchase counseling or classes on home buying. We would love to help you reach the American dream of homeownership.