Do you know what you need to buy your first home? Contrary to belief of many, you don’t need a credit score of 750 or a $20,000 down payment. In most cases these days in Connecticut, it usually takes the same credentials and money to rent a place as it does to buy a home roughly the same size. Here is what you need to buy your first or next home.

-Credit Score of 640 plus

Credit is a vital ingredient in buying a home. While some lenders and banks can go lower than a 640, rates and favorable down payment better fit with a higher score. You also can not have any active collections while applying for a mortgage. Since March 2020 when the coronavirus pandemic started, some lenders have required that some borrowers have higher scores as before pandemic.

-Work History

In most cases, lenders would like to see 2 years of consistent work history, which can be at the same job, or in the same position at a separate employer (Ex. A nurse that worked at a hospital for 5 years, and left to the same position at a new hospital a few months ago would likely qualify). If you’re self employed, the lender would need 3 years of history.

-2 Years Tax returns/W2s, 60 days bank statements and paystubs

If you’re self employed, most lender will want the same documentation but want an additional year of documentation. Another common document asked of by a business owner will be a profit and loss statement.

This is the basic documentation you need to get to the mortgage officer so they can qualify you and paint a better picture of the purchase price you’d likely get approved for. If you’re self employed or a 1099 worker, you will likely need 3 years of history and provide a profit/loss statement.


Depending on what and where you’re buying, you’ll likely be putting down 3.5% of the home price as a down payment ($3,500 for every $100,000). If you’re pursuing a multifamily property, you may need some additional funds. Inquire for more details.

There are ways to qualify for no down payment loans, which can be discussed as they require a credit score of 680 and above. Its always good to have funds leftover with a purchase like this.


I hope this helped you understand the basics needed to get started in the home buying process. If you’d like to get the process started and/or have questions, feel free to reach out to me. My team and I will be glad to help steer you in the right direction and help you make it happen.



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