First-Time Homebuyer Mortgage Checklist

First-Time Homebuyer Mortgage checklist

The following first-time homebuyer mortgage checklist will help get you started on the road to your new home because the primary thing you need to focus on is qualifying for a mortgage, since you’ll need to know how much house you can afford. Being pre-qualified also shows sellers that you’re serious about finding your new home!


  • Qualifying Income – Must have 2 years of income history to qualify
    • W2, self-employed or 1099 employee NOT bonus
    • Self-employed? Net income = Qualifying income
    • Not self-employed? Gross income = Qualifying income
  • Rental Income – Must have 2 years of rental income history to qualify
  • Other forms: Social security, commission, car allowances, child support, interest and dividend income. Be sure to see a mortgage professional for additional forms that may qualify.


  • Different loan programs have different requirements
    • FHA Loans: Can be approved with a credit score of 580
    • Conventional Loans: Requires a credit score of 620 – Most lenders require a 640 credit score
  • Good credit profile = Better rates – Anything over 740 is considered excellent
  • Factors that weigh on your credit score: Payment history, outstanding credit balances, credit history, debit/credit ratio, type of credit, and inquiries.


The following assets may be resources for your down payment and must be verified by your lender:

  • Savings/Checking account
  • IRAs, thrift saving plans, 401(k) and Keogh accounts
  • Stocks and bonds
  • Savings bonds
  • Gift funds
  • Sale of personal property
  • Downpayment assistance programs
  • Sale of real estate
  • Collateralized loans
  • Disaster relief grants and loans
  • Employer assistance programs

Approximately 5% of your down payment must come from the buyer on conventional loans.


  • Employment history of at least 2 years
  • Education counts as history
  • Self-employment must be greater than 2 years by the same business

VIDEO: See what else you need to know in buying a Boston area home

Joe Schutt

Committed to representing your interests with the highest level of integrity, I am dedicated to service excellence focused on personal attention and building a solid trust relationship. I listen carefully and make my clients feel comfortable in exploring their full range of real estate options and then encourage them to relax and rely on my expertise to insure that the details run smoothly and efficiently. Google+

More Posts - Website

Follow Me:
TwitterFacebookLinkedInPinterestGoogle PlusYouTube

Comments are closed.