Mortgage applications 101
In this lending environment, no loan is a slam-dunk. You can, however, improve your chances of success by understanding your own qualifications and being ready to provide any requested documentation. Here's a look at what qualifications make you creditworthy:
Stable job history with sufficient income to service all of your debt. Sufficient income often means at least 2.3 to 2.5 times your monthly debt payments.
Big down payment or sizeable home equity balance. No-down payment loans aren't an option anymore. The closest thing is an FHA mortgage that requires 3.5 percent down. Otherwise, expect to chip in 10 to 20 percent, either in cash or in home equity.
Strong credit rating. You'll need a FICO score upwards of 700 to qualify for advertised mortgage rates. A slightly lower number may still win you an approval, but the interest rate will be higher.
Solid paper trail. Don't fudge anything on your mortgage applications. You'll be asked to document your identity and all data pertaining to your income, debt, and assets.
