What Is A Mortgage Loan?
Mortgage loans are used for the purchase of either a home or land.
Who can qualify for mortgages?
The qualification process for mortgages is based primarily on income and credit rating. Generally speaking, these are the criteria for taking out a mortgage loan:
- Legal age (18 in most states)
- Employed (generally six months of employment is required)
- FICO score of 620 (higher scores will get better interest rates)
- In most cases, you will have to provide pay stubs and tax returns to qualify for a loan. The bank will also check your credit history for late payments, especially if they were late payments on a previous mortgage.
What types of mortgages are there?
FHA loans – these loans are backed by the federal government and were created to help individuals who couldn’t normally qualify for a home.
- Traditional mortgage loans
- Investor mortgages