Since the start of the financial crisis buying a house is harder than it’s ever been.  The days of no-documentation or low documentation are hard to come by. However, it is a great time to invest into real estate if you have all the right pieces to this real estate puzzle.

Before you even begin to consider buying a house there are some reality checks one must come across.  First thing you want to make sure is that your credit score is in order. Since the banks seem to be quite stingy nowadays, if you want to be considered for a home loan you need a credit score of atleast 720 or higher.  Also be ready to provide bank statements and pay stubs along with tax returns, which must all back up the total income you make. Finally you need to look at what kind of down payment you will be able to make towards your purchase. It used to be the norm to qualify for a zero down type of loan, however,that’s no longer the case. Be prepared to pay up front 10- 20% of your total loan. There still remains some federal loan programs but these can be hard to qualify for. If you do have enough for your down payment be prepared to show where that money came from. And lastly, banks will want to see that you have enough money in your reserves just incase you happen to fall into a financial set back. It used to be a good rule of thumb to have atleast up to  3 months of money reserves, but now just to be on the safe banks want to see that  you have atleast 3-6 months of reserves. If you find yourself fufulling all of these requirements then your well on your way to owning a home.

- Edwin, CashTheChecks.com