Tips for Qualifying for a Mortgage

There are various banks in Philadelphia who can offer you a residential mortgage, but there are a few points you should consider as you shop around for mortgages in the Philadelphia area.

For one, you will need to decide what type of mortgage you want to apply for. There are various types of mortgages out there, and the perfect one for you will depend on your situation.

For example, if you are buying a first time home, you may qualify for an FHA loan where you would only have to put down 3.5% or you could qualify for a USDA mortgage if your home is in an area designated as rural or urban.

When applying for a loan, be sure to have all your financial documents in order. You will need at least your last few pay stubs, a few months of bank statements, and your last two tax returns. You will also need to check your credit score to make sure there are any errors and you have a good enough credit score. The bank in Philadelphia you’re applying at should be able to provide you with information regarding credit requirements.

However, in most cases, you will need to apply for a conventional residential mortgage. Although you won’t necessarily have to put 20% down, the more you put down will likely increase your chances of getting accepted. You can choose to apply for a fifteen or thirty year mortgage depending on how long you want to pay off your loan.