The first thing to do when you decide to buy a home is to check your credit score . This is because all banks or loan providers look for a specific credit score before they sign them up for a loan. Conventional loans will look for about a score This is because all banks or loan providers look for a specific credit score before they sign them up for a loan. Conventional loans will look for about a score of 600 or higher (the FICO scale goes from 300 to 850) but the FHA will look that the home buyer has a score of at least 580 to receive the 3.5$ down payment condition.

Debt-to-Income Ratios

Much like with the other requirements, lenders are becoming more lenient when it comes to debt-to-income ratios. Thanks to some policy changes by Freddie Mac and Fannie Mae, banks and other lenders allow higher levels of debt, especially when compared to 2 or 3 years ago. Because first-time homebuyers might still owe some money on car mortgages or student loans, this change is much needed.

Getting a home loan is presently still relatively easy, which is why wanna-be homeowners should start their search for their dream home before this changes. In fact, if you have always dreamt of having your own home, then now is the right time.