Know exactly what you can afford before you start searching for a home.
Need financing options on a home, or other real estate? Choosing a purchase loan product that matches your goals and making sure you get the best rate for your given scenario can feel overwhelming without the right team on your side.
We’re here to make the home loan process a whole lot easier with tools and expertise that will help guide you along the way. One of the most important steps of the entire process (even before you start looking at houses) is to get pre-approved for financing. All that means is that you've filled out an application with a mortgage lender and they've done their due diligence to ensure you are ready to purchase. Although it may sound intimidating, a mortgage lender is generally most focused on the following three major aspects of your financial situation:
1) Income - When reviewing income, the lender just needs to know that you've got a somewhat steady stream of money coming in that they can reasonably expect to continue once you've been approved for a mortgage. This could be via active employment or through regularly occurring income outside of employment (such as Social Security, disability, real estate, and several other forms of income).
2) Assets - This basically just means money in a bank or other financial investments. These funds are important to make sure you can make any required down payments, cover any closing costs for your transaction, or to make sure you have extra savings available after closing your loan and taking possession of your house. The amount of assets you're required to have for mortgage approval vary greatly depending on the type of loan you're using for financing. Some don't require much in the way of assets at all!
3) Credit - Different loans require different minimum credit scores. In general, the better your credit score, the better the loans you're eligible to receive. However, that's painting with a very broad brush and not always the case. Even with imperfect credit or blemishes on your credit report from long ago or even more recently, there may still be mortgage loans available to you. And if there aren't any available now then we can always help you make a plan to find one as soon as your current financial situation changes.
The world of mortgage lending is very in-depth and can be particularly confusing whether you're totally new to our world or you've got plenty of experience. Regardless, we're here to facilitate a simple transaction and ensure that you're not paying any more than you have to in order to accomplish your goals.
Here's how our home loan process works:
To qualify for a mortgage, lenders typically require that you have a debt-to-income ratio of "43/49." This means that no more than 43% of your total monthly income (from all sources, before taxes) can go toward your new mortgage payment, and no more than 49.99% of your monthly income can go toward your total monthly debt (including your mortgage payment). VA and FHA loans even allow for higher debt ratios on a case by case basis.
Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below:
