Oakstrand Realty

According to Rocket Mortgage to be considered for a residential property, banks use the following information to qualify buyers for mortgages:

Income

· Salary

· Military benefits and allowances

· Any extra income from a side hustle

· Alimony or child support payments

· Commissions

· Overtime

· Income from investment accounts

· Social Security payments

Assets

· Checking and savings accounts

· Certificates of deposit (CDs)

· Stocks, bonds and mutual funds

· IRAs, 401(k)s or any other retirement account you have

Credit Score

At lease between 500-620. Some banks will consider scores as low as 500 with additional money down.

Debt-to -Income Ratio (DTI)

DTI ratio is a percent that tells lenders how much of your gross monthly income goes to required bills every month.

Wells Fargo has a great Home Affordability Calculator that uses income and debt to give you a good estimate of how much home you can afford ( When calculating your monthly expenses, use the monthly amounts due that you see on your credit report only, except the mortgage of your current resident; exclude that).