When thinking about buying a home, most first-time homebuyers do not know what to expect. By doing a little homework before you go to the lender and start looking at homes, here are some tips:
1) Check your credit report by going to www.annualcreditreport.com. If any of the account information is incorrect, this is the time to get it corrected.
2) Evaluate your assets and liabilities - how do you spend your money? Do you have piles of money left over every month or are you on a shoestring budget?
3) Organize documents - Every lender will ask for your last two years of Federal Individual Tax Returns with W-2's or 1099's, your most recent 30-day pay stub, your most recent two months of checking/savings accounts (all pages) and any investment/retirement accounts. If you had a bankruptcy, divorce, etc., you will need to provide those documents also.
4) Qualify yourself - you should know what you are comfortable with for a total monthly mortgage payment. Is it more than your current rent? How have you prepared for the increased payment? What are your other minimum monthly consumer debts? If added to your proposed house payment, how much is the total in comparision to your current gross monthly income? You should not exceed 45% of your gross monthly income for any loan program.
5) Figure out your down payment - scraping up that initial down payment takes some effort. Though FHA loans require a less substantial down payment than conventional loans, it can still be a huge chunk of money and you need to know whrere that money will be coming from.
Finally, speak to us here at Premier Mortgage Professionals. We will navigate you through the homebuyer process and answer all your questions.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment