Behind the Vault

Worried that your financial standing might stand between you and your dream home? It can sound intimidating to buy a home, but these steps can improve your chances of getting approved.

1. Establish Good Credit: Building and maintaining a solid credit history is essential. Good credit scores increase the chances of loan approval and qualify you for the best interest rates.
2. Ensure Employment Stability: Lenders prefer borrowers with stable employment. Demonstrating continuous income through a steady job history can strengthen loan applications.
3. Manage Debt-to-Income Ratio: Keeping a low Debt-to-Income ratio is crucial. This ratio showcases financial stability and increases the capacity to qualify for higher loan amounts.
4. Build Assets: Accumulating assets is beneficial. Having savings and assets allow applicants to make a down payment, resulting in lower monthly payments and increasing the likelihood of mortgage loan approval.
5. Seek Homebuying/Financial Counseling: Credit unions and other resources can provide valuable guidance on preparing for homeownership, understanding loan options, and improving financial readiness. These services are available for free to Family Trust members.

Various government programs, such as FHA loans, VA loans (available for eligible veterans), and USDA loans (designed for rural areas), offer options to borrowers with less-than-perfect credit or limited down payment funds. Family Trust provides a zero down, 100% financing option for those who qualify. Nonprofits can also provide support in some instances. Habitat for Humanity is a nonprofit organization dedicated to providing affordable housing solutions to families in need.

You can make improvements to set yourself on the path of homeownership. Start implementing these strategies to see an increase in your credit score, but know that this process will take time. Need some extra guidance on this journey? Family Trust members have access to free financial counseling. Request an appointment at www.familytrust.org/budget.