Have you been thinking about moving into your own home, but don’t know where to begin? If you are looking for a home, it is likely you will need a mortgage. Here are some tips on what to have ready when you start searching for a mortgage:
What will you need?
- Tax returns
- Bank statements
- Proof of income
- Source of any money you plan to use
- Employment verification
What should you do before getting your mortgage?
Meet with a mortgage professional
This is the best way to get informed. A mortgage professional will guide you through the entire process, making sure you have everything you need. He or she can help you determine how much you can afford and what type of loan is best for you.
Pay off your debts
Your debt-to-income ratio is taken into consideration and will determine how much you can afford to borrow. The lower the ratio, the better. Take some time paying off your debts to lower your ratio and give you more options when borrowing.
Improve your credit
Lenders take a good look at your credit history. If you frequently miss payments or are late, you will lower your credit score.
Consolidate or refinance: Student loans are becoming a large debt in today’s world. By paying off your student loans before buying a home, you will be able to afford more. If you can’t, consider consolidating or refinancing – it may be possible for you to lower your monthly payments.
Lenders like to see a solid work history before giving you a loan. You might have a hard time getting a mortgage until you have worked at your job for more than a few months.
You’re going to need some cash to cover all of your costs. Your mortgage professional will inform you of all costs upfront. In some cases, customers can finance costs. There are options mortgage professionals will discuss with customers in detail to determine if it makes sense financially. At times it does make sense, and at other times it doesn’t. In the end, our mortgage professionals are offering the best advice for you based on your situation so you have the greatest possible outcome with your mortgage.
Our dedicated mortgage professionals will educate you and help you through each step of the mortgage process. Contact the Housing Buzz team today to get the process started!