How Do Pleasant Hill Mortgage Lenders Decide How Much I Can Borrow
Before you buy your new home in Pleasant Hill you need to ask yourself if your finances are in the right place. Knowing how much you can borrow is an essential step borrowers need to take before going house hunting. An LA County mortgage broker can help you out and make your home buying process less worrisome.
Let’s take a look at a number of factors that help lenders decide how much you can borrow so that you’ll know how to manage your finances going forward.
Credit Score
A lender would surely look at a borrower’s credit scores to determine loan amounts. Credit scores show lenders the amount of risk they are taking when they approve your loan application. Good credit scores can increase the amount a home buyer wants to borrow.
If you want to learn more you can ask us about Pleasant Hill CA home loans.
Credit History
Your credit history is linked to your credit score and lenders analyze both. They will check your credit history for red flags like applying for numerous loans or going on buying sprees that you can’t afford.
See a Pleasant Hill mortgage calculator on our homepage to know how much you’ll pay for your mortgage.
Employment History
Lenders will look at your employment history to know if you have a stable income. A two to three-year timeframe would give lenders a clear picture of reliability or risk they are taking if they approve your loan.
If you are hopping from one job to another, you are considered a high-risk applicant and may get your loan denied.
Consistency with your employment and income gives lenders a reason to increase loan amounts.
Down Payment
Lenders would favor borrowers who can put down a larger amount upfront. This lessens the risk for lenders and makes them consider approving your loan for a larger amount.
A 20% down payment for a home is ideal for lenders and this gives you a better chance at getting a higher loan amount plus it can also give you a lower interest rate.
Loan Type and Term
Loan types and terms can influence the amount you are applying for. Different loan types have certain limits.
For example, the FHA loan limits for Pleasant Hill, CA buyers for a single-family home in 2022 is $822,375 and $1, 053,000 for a 2-unit home.
If you want to learn more about loan limits in Pleasant Hill, CA, you can get in touch with your trusted lender.
Do you want to know how much you can borrow for your Pleasant Hill home?
One of the most important things you need to know before you shop for your new home is how much you can get from your loan application.
You don’t want to close a deal and then find out that you’ll be left with close to nothing after loan payments.
Ask our loan experts if you qualify for a home loan from Lux Funding.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.