Fall is a season for change. The weather cools down, the holidays start creeping onto the calendar, and before we know it, another year is coming to an end.

It is also a good time to take a look at your plans for buying a home.

If homeownership is something you are considering in the next few months, you may be focused on one thing: your credit score.
Credit matters, but there are several other pieces that can be just as important when it comes to qualifying for a mortgage.

Your Credit Score Is Only One Leaf on the Tree
Yes, I went there. It’s fall.

Your credit score helps lenders evaluate your credit history and can affect your mortgage options and pricing. But it does not tell the entire story.
Mortgage qualification also considers your income, monthly debts, assets, employment and the loan program you are using.

Two buyers with the exact same credit score can have completely different mortgage options.

Your Income Has to Be Qualifying Income
What you earn and what can be used to qualify for a mortgage are not always exactly the same thing.

Salary income can be fairly straightforward. But if you receive overtime, bonuses, commissions, self employment income or income from multiple sources, additional history or documentation may be required.

This is one reason it helps to have your finances reviewed before you find the house.

Your Monthly Debt Matters
Car payments, student loans, credit cards and other monthly obligations can affect how much home you qualify to purchase.
Someone earning $150,000 a year with substantial monthly debt may qualify differently than someone earning less but carrying very little debt.

Income tells us one part of the story. Your monthly obligations tell us another.

Your Savings Matter Too
Having money available for your down payment and closing costs is important, but where those funds come from can matter as well.
Transfers, large deposits and gift funds may require documentation.

If you are planning to buy, this is not the season to start moving money between accounts without talking to your lender first.
Pumpkins can move around the porch. Your closing funds are better left alone until we talk.

Fall Is a Great Time to Get Prepared
You do not need to be ready to make an offer tomorrow to start the mortgage conversation today.

If buying a home is something you are considering later this year or even next year, reviewing your financial picture now gives you time.
Maybe everything looks great and you are ready whenever the right home comes along.

Maybe there are a few things that would put you in a stronger position.

Either way, I would rather know now than discover it after you have fallen in love with a house.
Your credit score matters, but it is only one part of your mortgage story.

If buying a home is on your radar, let’s talk.

Liberty Star Mortgage
A Branch of SecurityNational Mortgage Company
NMLS 3116
Collette Horton | NMLS 290357