How do I buy a home?
Can I buy a Home?
I am sure you’ve heard that interest rates are still low but expected to creep up by years end. So now what? Don’t just continue to look at homes on the internet day after day dreaming of your big move – take action! Get the facts at no charge and even better … it doesn’t take a ton of time or energy!
Here is the Mortgage Qualification Process Simplified:
- Call a Mortgage Officer
- Present your financial situation – debts and income
- Give permission to run your credit
- Get qualified for a loan amount and start home search OR if you don’t qualify now, formulate a plan to increase your credit score and decrease your debt so you can qualify for a mortgage in 6-12 months
Typically one 15 minute phone call reviewing your individual financial situation with a qualified mortgage professional and you will know where you stand on your current ability to purchase real estate.
So… who do you call? I have a bunch of trusted mortgage officers that I can recommend who work in the North Attleboro area as well as throughout Norfolk, Bristol, and Middlesex Counties or feel free to touch base with your local bank or credit union. Give them a call or stop by their office. Let them know you are interested in getting qualified for a mortgage. If this is your first time looking into a mortgage, share that with them so they can educate you about the process.
During this first call or sit-down meeting, mortgage professionals are going to review your entire financial situation. What is your income? What is your income comprised of – salary, hourly pay, overtime, tips, child support, social security, etc? All of this will make a difference as the bank will want to know what consistent income they can count on. They will also want to know about all of your debts and monthly bills. If your student loans are deferred, you still want to share that. If there is a bill in your name that someone is paying, share that. Your mortgage officer is going to need every bit of information to make sure they can accurately assess what loan amount you will be approved for. All of this information will give them your “debt to income” ratio. Make sure to be honest and complete so you don’t end up wasting your time or money getting into an offer process on a home only to find out your loan won’t be approved (nor would it ever have been.)
Mortgage professionals are also going to pull your credit report. Your credit report will give you a “score” as well as list any credit line or account opened. Your score is going to impact the type of mortgage you are qualified for as well as the interest rate you will be paying on your mortgage. Do not try to hide any old debts or collection claims… they will all be on your report and your mortgage officer will see them.
Your credit score and your “debt to income ratio” will then determine if you do indeed qualify for a mortgage and what your loan amount could be. If you don’t happen to qualify now, that just means that you need to start paying off some of your debts and saving more money. Sometimes in just 6 months you can change your financial picture and start looking for homes. Sometimes it takes longer, but better to have the information NOW so you can formulate a plan.
Now that you have officially been qualified for a loan, it’s time to start getting you out looking for your next home. My favorite part!! Have your mortgage officer send me your qualification letter and I can perform a search in the correct price range in just minutes. I look forward to guiding you through the entire home buying process so stay tuned for more information on the home buying process both here in the Attleboro areas as well as throughout Bristol, Norfolk, and Middlesex Counties. And as always, please feel free to contact me with any questions… I am always happy to help home buyers.