Qualifying for a home loan is the essential first step when you are considering a home purchase. Once you have decided to buy or refinance your home, it is crucial you know what your income and credit history will enable you to obtain.

By consulting a lender before you begin looking for a home, a loan counselor will qualify and provide you with a written commitment known as a pre-approval. The pre-approval is verification for the seller that your financing has been secured.

The main factors considered for qualifying are annual income, credit history, monthly debt, employment history, and assets for down payment. When there are considered collectively, these elements determine the maximum monthly payment and loan amount for which one can qualify.

Once you are pre-approved, you can then write an offer to purchase with the confidence of knowing that your home loan is in place.