Home buyer tip of the week. Finding your dream home can be a very exciting process but can also be very difficult if you dont take proper steps. First thing a home buyer must do is get preapproved by a reputable lender. Many people ask what is the difference between getting preapproved, and prequalified.
A prequalificat...ion is where you disclose your income, and assets often verbally with limited amount of paperwork submitted to a lender,and you cannot recieve a mortgage commitment from any lender without all your paperwork being submitted.
A preapproval is when you get your credit run,and submit 2 years of W-2,or 1099,along with 2 months bank statements,and your last 2-4 pay stubs. Buyers are preapproved based on there credit rating,downpayment,and amount of debt to income ratio. For example if you have a credit score of a midrange of 740 with an income of 100k but your debt ratio is over 45 percent of what you show it will be very hard for you to obtain a mortgage. In the coming days and weeks I will discuss items that affect your debt to income ratio such as car payments,and credit card debt. Always consult with your lender before starting a home search to get an accurate picture of what type of home you can afford.
Thank You for reading my home buyer tip of the week.
For all of your real estate needs on Staten Island please contact me at (718)408-1499 or visit my website www.sipremiereproperties.com You can also email me at info@sipremiereproperties.com
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