Credit score & history
Programs are available for credit scores as low as 580. The higher the credit score, the more options are available.
A clear path to your own front door.
The complete homebuyer guide, made easier to explore. Start where you are, and come back whenever you need a little clarity.
01LET'S START WITH YOU
Your budget. Your comfort zone.
Before you begin your home search, establish your pre-approval and work through the numbers with Lacy so you feel comfortable with your budget and know what to expect.
01
What is the best type of loan for me? (i.e. Conventional, FHA, VA, USDA, Down-payment Assistance, etc.)
02
Do I qualify for any special loan programs?
03
What will my estimated monthly payment be in the price range I’m searching in?
04
How much cash out of pocket do I need to be prepared for?
05
How long is my pre-approval good for?
06
What should or shouldn’t I be doing between now and going under contract on a home?
02GET YOUR PAPERWORK READY
A little preparation goes a long way.
What you need depends on your income, assets, and circumstances. Here is a general checklist for each applicant.
0 of 19 items marked ready across all groups
W-2 Employee5 items
Self-employed6 items
Retired4 items
Real estate owned4 items
Checkmarks stay in this browser only. This is a preparation tool—not a document-upload portal. After you submit your application, Lacy will let you know if anything else is needed.
03THE BIG PICTURE
What helps you qualify?
Several factors work together to determine your mortgage options. These are some of the most influential in the original guide.
Debt to income ratio
Debts on the credit report compared to monthly gross income. For most mortgage programs, your minimum monthly payments (according to your credit report), plus the estimated mortgage payment need to be under 45%-55% of your gross monthly income.
Assets for down payment
More assets offer more flexible financing options.
Stable employment history
Stable employment history for the past 2 years (time in school can also be used in lieu of employment history).
KEEP YOUR APPLICATION ON TRACK
The dos. The don'ts.
Small financial changes can make a big difference during the mortgage process. Keep your loan team in the loop.
Do these things
01Keep originals of, or be able to access, all pay stubs, bank statements, and other important documents on employer and bank websites.
02Provide your earnest money deposit from your own personal bank account or acceptable gift funds. Talk to your Loan Officer or Loan Coordinator for clarification; this can be difficult to resolve if not managed properly in the beginning.
03Provide all documentation for the sale of your current home, including the sales contract, closing statement, and any employer relocation or buy-out program, if applicable.
04Notify your Loan Officer or Loan Coordinator if you plan to receive gift funds for closing. Gift funds are acceptable only if certain criteria are met. Advances from credit cards for down payment or closing costs are never acceptable.
05Notify your Loan Officer or Loan Coordinator of employment changes, such as a raise, promotion, transfer, or change in pay status (for example, salary to commission).
06Be aware that a new credit report could be pulled just prior to closing.
Pause before you…
01Don't close or open asset accounts or transfer funds between accounts without talking with your Loan Officer about proper documentation. For example, before transferring all funds from savings to checking, check with your Loan Officer.
02Don't deposit money outside your automated payroll deposits, particularly cash or sale-of-personal-property proceeds, without notifying your Loan Officer or Loan Coordinator. Many guidelines require substantial documentation of the source of deposits.
03Don't change jobs or employers without asking how the change might affect your loan.
04Don't make major purchases before or during your contract, such as a new car, furniture, or appliances; this may affect your loan qualification.
05Don't open or increase liabilities, including credit cards, student loans, or other lines of credit, during the loan process; this may affect your qualifying loan amount.
04KNOW YOUR CREDIT
More than just a number.
Your credit score is a numerical representation of your likelihood of repaying credit. It is a snapshot that can change with new actions and time. The guide describes scores from 300–850, with a higher score generally more favorable when applying for credit.
How your score is determined
The scoring-factor breakdown shown in the original guide:
Payment history35%
- Late payments will damage your score; a positive history will improve it.
- The severity and quantity of delinquencies also affect your score.
Amount owed30%
- Too many credit cards with high balances can lower a score.
Length of credit history15%
- The longer the history, the better.
- How long have your credit accounts been established? How long has it been since you used certain accounts?
New credit10%
- Opening several accounts in a short period represents greater risk, especially for people without a long credit history.
Types of credit in use10%
- The guide's example of an ideal mix: two installment loans and three revolving accounts with balances below 30% of their high credit amount.
- The example also lists no collection accounts, public records, foreclosures, or late payments.
Habits that support a favorable score
Monitor your credit
Order a copy of your credit report from each of the three major bureaus at least annually at AnnualCreditReport.com.
Pay on time or early
Even a 30-day late notation on a small credit card can significantly affect your score.
Be thoughtful about co-signing
Late payments are your late payments and affect your credit score.
Don't close old revolving accounts
Old accounts with zero balances can help demonstrate credit longevity.
Limit new accounts
Avoid opening accounts unless necessary; inquiries may affect your score depending on your credit history.
Report fraud immediately
If you find yourself the victim of fraud, immediately contact the credit bureaus, credit card companies, banks, and the FTC at FTC.gov.
Protect your mortgage application
Do not extend or open new credit accounts during the mortgage application process, including when purchasing or refinancing a home.
05LOOK AT THE BIG PICTURE
Renting or buying? Start with your goals.
Deciding to buy can feel overwhelming, especially if the mortgage payment is higher than your current rent or interest rates feel high. Lacy's guide encourages you to step back and consider your long-term goals and the opportunity to build equity through paying down a mortgage and potential appreciation.
SEE THE LONG-TERM TOTAL
TOTAL RENT OVER 5 YEARS$120,000
At a constant monthly rent, excluding increases.
The guide's example: renting at $2,000 a month adds up to $120,000 over five years without building ownership equity. Its “100% interest on rent” phrase is a metaphor, not a loan interest rate. Buying also brings interest, taxes, insurance, maintenance, and transaction costs; equity and appreciation are not guaranteed.
See all rent examples from the original guide
| Monthly rent | After 2 years | After 5 years | After 10 years | After 15 years |
|---|---|---|---|---|
| $1,400 | $33,600 | $84,000 | $168,000 | $252,000 |
| $1,600 | $38,400 | $96,000 | $192,000 | $288,000 |
| $1,800 | $43,200 | $108,000 | $216,000 | $324,000 |
| $2,000 | $48,000 | $120,000 | $240,000 | $360,000 |
| $2,200 | $52,800 | $132,000 | $264,000 | $396,000 |
| $2,400 | $57,600 | $144,000 | $288,000 | $432,000 |
| $2,800 | $67,200 | $168,000 | $336,000 | $504,000 |
| $3,000 | $72,000 | $180,000 | $360,000 | $540,000 |
| $3,200 | $76,800 | $192,000 | $384,000 | $576,000 |
06THE DAY YOU'VE BEEN WAITING FOR
A few essentials. Then, the keys.
Here's what to have ready for closing day.
A government-issued photo ID
Bring valid, non-expired identification, such as a driver's license or state-issued ID. The title company will need proof of identification.
Funds for closing
The team provides the final amount and instructions for paying the title company by cashier's check or wire transfer. Personal checks and cash are not accepted. Independently confirm wire instructions with the title company using a trusted phone number.
Electronically signed documents
For most closings, an email arrives between midnight and 8 a.m. on closing day with some documents to sign electronically, making your title-company signing quicker. The title company provides a copy of all signed documents.
YOU DON'T HAVE TO FIGURE IT OUT ALONE
Let's connect Let's talk about your next chapter.
A question, a plan, or a place you've fallen in love with. I'm here for it.