What You’ll Need to Qualify in Today’s Market:
– Down Payment:
Generally between 5-20% of the purchase price (40% of buyers are putting down less than 10% – with many putting down as little as 3%)
– Income Verification, Credit History & Asset Documentation
– Impartial Third-Party Appraisal:
Your lender needs this to verify the value of the house you want to purchase.
– Stable Income Good Credit History
You will interact with various professionals during the home buying process, all of whom are valuable resources & perform necessary roles.
Steps To Take:
1. Find out your current credit history & score.
You don’t want to start out with any surprises.
2. Start gathering all of your documentation:
Income Verification (W-2 forms, tax returns, employment), Credit History & Assets (such as bank statements to verify your savings)
3. Contact a professional,
to help you develop a spending plan & determine how much you can afford.
4. Consult with your lender to review your income, expenses & financial goals,
to determine the type and amount of mortgage you qualify for.
5. Talk to your lender about applying for a mortgage & getting a pre-approval letter.
This letter provides an estimate of what you might be able to borrow (provided your financial status doesn’t change) & demonstrates to home sellers that you are a serious buyer.
What this means for you:
Do your research, reach out to the professionals, stick to your budget & be sure you are ready to take on the financial responsibilities of being a homeowner.