Most newly married couples start their living together in an apartment or condominium. Over time, however, with the thoughts of having more room and possibly starting a family, most couples start thinking that purchasing a home may be the next logical step. The marketplace right now for purchasing a home is spectacular with homes available all over the United States at very reasonable prices. The first step in the road to owning your own home is to pre-qualify for a mortgage and or a home loan. Below are steps you would need to follow in order to obtain the pre-qualification needed for purchasing a house.

1. Research and find a lender or mortgage broker in the area you are looking to move to. It is best to first find a real estate broker and take a look at a few houses in a few different areas. Once you find a house or section that you are interested in, ask the real estate agent for a reliable broker that they have worked with in the past regarding home loan qualifications.

2. Once you have found a mortgage broker that you are comfortable with, they are going to ask you for specific information regarding your financial statements. Recent pay statements will be needed to allow for the broker to calculate your gross income on a monthly basis. All debts that you currently are paying on a monthly basis will have to be documented and provided to the broker. These debts usually include any credit cards that you currently are in possession of, car payments, school loans and or medical bills.

3. The mortgage broker working your case will then tally up all of your debts on a monthly basis in comparison to your income and come up with a ratio. This ratio is going to play an enormous part in you being able to pre-qualify for a home loan as well as obtaining a monthly payment and interest rate you can afford on a consistent basis.

4. Credit scores will then be checked on all parties looking to apply for the loan. A credit score determines how much risk is involved for the lending institution if they loan you the money needed. There are a lot of situations that go into determining your credit score, such as your age and how long you have had credit to your stability in your occupation. Anything above 650 on your credit score will have you going in the right direction towards pre-qualification.

5. After all ratios and credit scores have been approved by your broker as being satisfactory, he/she will then begin the process of proposing a contract stating your pre-qualification for a home loan. The contract will have all of your statements, ratios and credit scores listed as well as the broker’s approval that everything is in the right place. This contract is not an approval for a loan but can be provided to a lending institution when attempting to obtain a home loan for the residence of your dreams.

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