Working consistently is one of the most important factors a lender will want to see. Steady employment is a critical and crucial factor in deciding not only how much to lend, but at what rate. The lack of steady employment does not mean you can not get a loan, but will effect the outcome. An important factor in this consideration is if you have held the same job for the last two years. If you have moved to a new job, it is often favorable if you have moved and received the same or more pay.

If you have not been working steadily for at least two years, it is important to show why there was a lapse in employment. For example, if you were just discharged from the military, recently finished school, work seasonally with work gaps between seasons, were temporarily laid off, or had an illness that prevented you from working, you may still be able to qualify for a mortgage loan.

If you have been working steady, your job of receiving a mortgage loan, and at a lower rate will be considerably easier. If you have had a lapse, but can demonstrate why and a complete history, the lender will have the evidence needed to initiate your mortgage loan.

If you have not been steadily employed for the last two years, you job will be considerably more difficult. If you were dismissed with a cause, have big gaps in your employment record, or noticeable gaps in income that are hard to explain. You may wish to postpone your purchase until a satisfactory employment record can be shown.

Another factor that is considered is credit. Your credit record is checked before a loan will be issued. Mortgage lenders want to see a record of dept and payment. They will want to build confidence that you can pay the increased dept. Some of the things that are examined on the report is how much debt you have incurred , that is how much outstanding debt you still owe as well as a steady payment history and how long you have left to pay off existing debt.

Credit bureaus will keep a detailed record of most American consumers. compile these reports by obtaining information from a wide range of sources--credit card companies, banks that have given you car loans, department stores and gasoline companies that provide credit cards. If you do not have a credit card and have never borrowed money, a credit history will need to be established by showing monthly rent payments and/or utility company payment histories. Your lender can provide more information on the necessary requirements.

Your credit card record is available by contacting your credit bureau. These places are usually listed in your local yellow pages under Credit Reporting Agencies and will provide you with a copy of your report, usually for free or for a small fee. The larger companies are TRW (Experian), Equifax, and CBI as well as Trans Union. You can contact any of them for your credit report. Online credit report publishers are also available for a small fee.

If you have a good credit record, this means you have a good history of getting your bills paid on time and can prove that with a credit report or by putting together a non-traditional history of credit. The lender credit standards vary, but being late on a payment or having your report examined a few times doesn't mean you do not have a good credit history, but you may need to explain why. If you show a pattern of not paying accounts, it will ultimately affect your credit. Good credit gives the mortgage lender confidence that you are willing and able to pay your bills in a timely fashion.

If you have an unsatisfactory credit history, this probably means you do not pay your bills on time or have not paid your bills on time for one reason or another. You may need to explain why you have not paid your bills on time. A bad history tells the mortgage officer that you have more credit responsibilities that you can handle. Things that are considered negative are repossessions, late payments, accounts turned over to third party collection agencies, as well as judgments and liens - and of course bankruptcies. Bad information in your file may lead creditors to deny credit to you. If the report shows unfavorable and is accurate, you may wish to delay your purchase. You may want to improve your credit by consistently paying bills on time and paying down your existing debt.

Most home buyers require a mortgage loan from a bank or other financial institution. Very few loans are 100%. Most lenders insist that you contribute a varying amount of money towards the purchase price of the home. These days many buyers put down as little as 3 to 5 percent of the total purchase amount.

For a $100,000 home, a 5 percent down payment requirement would be $5,000. You also will need to pay a number of additional costs, called closing costs, that cover the legal transference of a property to your name and other costs associated with your taking out a mortgage. Closing costs generally range from 3 percent to 6 percent of the sales price of the home. So, if you were to buy a $100,000 house with a 5 percent ($5,000) down payment, you could expect to pay between $3,000 and $6,000 in closing costs. Think about how much houses cost in your area and the type of mortgage down payment your loan will require. Then calculate the funds you have available to you for a down payment and closing costs.

If you have the down payment required, your employment history is in order and your credit is reasonably sound, congratulations! You are ready to purchase your home today! You can get pre-qualified immediately. This process will allow you to shop for the home of your dreams while knowing how much money you are able to spend. Remember Have Fun!