Before you consider buying a home, there are multiple things to consider as a buyer. The more you know, the better you can execute – making the process of home buying exciting and rewarding.
Pre-qualifying for a mortgage is the best way to start. Lenders use a variety of criteria to evaluate what you can afford as a buyer in the pre-mortgage process. These criteria include income, credit score, cash for down payment or closing costs and any existing debt or other financial obligations. These can have a definite impact on what you can afford. There are two key ways to determine what you can afford. The first is an expense to income ratio, which evaluates an estimated mortgage payment versus your monthly income. The second is a debt to income ratio, which looks at monthly expenses you already incur versus your monthly income.
Or Better Yet - Get our CREDIT FILE UNDERWRITE!
It's Easy as 1 - 2 - 3!
We Gather your Docs.
Our In-House Underwriters Evaluate & Verify the docs.
We Issue a CONDITIONAL APPROVAL
You are a STRONGER BUYER - Completing a more thorough verification beforehand puts you in the same position as a Cash Buyer!
Your Credit Score Leads the Way
Your credit score can be your best asset and knowing what is on it is even more important. There are three credit reporting agencies where your credit score is kept. The credit scores uses a model evaluate you as a consumer. It can tell if you pay your your bills on time, amount owed, have filed bankruptcy and have judgments or liens entered against you. Your credit report can also indicate how many times lenders have reviewed your credit. This score is used to help lending institutions make decisions on loan amounts, interest rates and terms, or durations, of mortgages. When preparing to buy a house, making large purchases on credit or taking out other loans can have an adverse impact on your credit score. Make sure to prepare for the home buying process – This is the key to scoring your dream home!
Buying a home is one of the best investments you can make. By being proactive and knowing all the steps to success, you give yourself an advantage. So, what can you do as a buyer that can make this process easier for you? Know what to expect and prepare the best you can, so that your team of real estate and mortgage lenders can work with you to meet your goal of owning a home.
Mortgage Pre-Approval
How much can you afford? One of your smartest moves is to know your price range in advance and get pre-approved through your mortgage lender. By knowing your price range, you can make better decisions when looking for your home.
Using Your Agent
Know what you're looking for, and working with your real estate agent to establish what features and amenities you want in a home. This can make the home buying experience more successful and lead you to find the home you’ve always wanted.
Making the Offer
Once you’re ready to make the offer, your real estate agent presents it to the seller, who can then accept, counter, or reject it. If an agreement is reached, the real estate agent acts as coach for arranging the Purchase Agreement to be signed by you and the seller. This document will outline the terms of the sale.
Inspection Time
A home inspection works as a safeguard before the purchase is complete. Remember to have a professional inspector come in after an offer is accepted to evaluate the house and provide a scouting report on any safety issues. This gives you as the buyer an opportunity to evaluate the home and reject the initial offer.
Appraisal – Know Your Worth!
The appraisal process gives you the peace of mind of knowing the current market value of the home. This is required by a mortgage lender – and can help you with the purchase of the home you have always wanted!
Title Insurance
This insurance ensures that your home doesn’t have anything attached to it, such as liens. It establishes a clear channel of ownership and protects the buyer against these types of issues.
The Closing
The closing is that final step in the homebuying process. A closing agent will oversee this process which includes the final transfer of ownership.
SCORE!
The home is yours! Congratulations and thank you for having us as part of your team!
What can you do to make it easier for getting a mortgage loan approved? Several factors are evaluated in this process, including credit score, income and any assets so it’s important to make sure you know your financial standing – in other words those items that can make or break your loan application.
Keep It Current
Make sure that all accounts are current and payments are made all on time. This includes car and house payments, credit cards and even accounts that can be paid off at the time of closing. Even one late payment can cause problems.
Get Organized
Keep a folder with all necessary documents such as pay stubs, statements of bills and any other information that a mortgage lender would need. Have these ready and organized so your lender does not have to search for information.
Know Your Status
Many factors can have an impact on obtaining a loan such as changing jobs, having additional credit report inquiries, making major purchases, changing bank accounts and not listing funds intended for closing costs. Make sure you consider any financial decisions because they can cause problems with the mortgage process. Make sure your financial status is your focus so you can obtain the best interest rate possible
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