NOVA Homes Blog: What Lenders Are Looking for in Northern Virginia Homebuyers This Spring

Tuesday, April 14, 2015

What Lenders Are Looking for in Northern Virginia Homebuyers This Spring

House hunting is indeed an exciting aspect of the spring real estate market— from browsing available properties online, visiting open houses and exploring desired neighborhoods in NoVa. However, that is just one small part of the homebuying process.

In a previous blog post, I explained the importance of being prepared before you begin the house hunt this spring. It is wise to take the steps mentioned in the post and meet with a lender to get pre-approved.

If you have yet to meet with a Northern Virginia lender to learn if you're able to qualify for a mortgage, here are four things they will be looking for in potential buyers:

1. Capacity
Lenders in NoVa and DC will want to know you have the ability to pay back the loan on a home. They will look at your income, your current employment and employment history, your monthly payments or debts (such as credit card payments) and your savings to decide if you can comfortably afford a mortgage every month.

2. Credit
Your credit score, as you can imagine, plays a major part in deciding if you will be granted a mortgage loan. Lenders in Northern Virginia will look at how well you have done paying your bills on time, in addition to other debt payments. It is also recommended to try to improve your credit score before applying for a mortgage to increase your chances of being approved.

3. Collateral
Lenders will look at the value of the home you intend to purchase in Northern Virginia when deciding if you qualify to take on a mortgage.

4. Capital
In order to determine whether to grant a homebuyer a loan, the lender will look over the money and savings you have on hand in accounts, plus any investments you have or other assets that may be sold for capital. They will want to see that you have at least two months of reserves to cover a mortgage payment and that you can manage your money well to pay back the debt of the loan.

If you are ready to begin the homebuying process in the NoVa and DC area, I am happy to help! Contact me today to discuss what steps you should take first!

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna.

Earle Whitmore

Long & Foster Real Estate, Inc.
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When you first meet Earle, she greets you with a firm handshake and a broad smile. She has a certain charm and friendly nature that immediately set you at ease. As you talk to her, she listens intently. You can see by the earnest look on her face that she’s already developing ideas and strategies to accomplish your goals. By the end of your conversation, you’re surprised that someone can have such a clear understanding of your needs after just one meeting. This is the essence of Earle’s real estate service. She’s a straightforward businesswoman who doesn’t let up until her clients are satisfied.
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Northern Virginia is a thriving area consisting of several communities that thrive with historical and cultural richness as well as physical beauty.
With all that the Northern Virginia area offers, there’s never a shortage of things to do, natural beauty and great schools. From the ocean to the mountains to the nation’s capital, this is a part of the country that has it all!
Earle has assembled some helpful resources to help you with finding your new home. From her comprehensive list of Local Links, her Home Style Guide, or hands on personal help, described below, you know you can count on Earle.