Tuesday, January 4, 2011

WHAT SHOULD YOU CONSIDER BEFORE BUYING A HOME..FROM A MORTGAGE PROSPECTIVE

For most of us buying a home will be one of, if not, the single greatest investment in our lifetime.  Needless to say there is an awful lot to consider from all perspectives not just mortgage.    As a mortgage loan officer, I work with homebuyers everyday and I see the same common mistakes made all the time.  Probably, my best advice and the very first step you must take is to determine how much you can afford to buy.  Which leads you to getting a pre-approval from a mortgage loan officer.  The loan officer must determine the debt to income ratio and insure your credit score is within the limits of qualification.  Typically, a minimum of 620 is needed to qualify for a mortgage.  Your debt to income ratio is determined by how much income you have coming in and how much debt you have going out of your household every month.  This debt includes such items as car payments, student loans and credit card debt. 

Once you have determined that you qualify for a mortgage and your debt ratios and credit scores are within guidelines then you can start looking for your new home.  What you qualify for is very important to the Realtor you work with as well, for now they know what price range of homes to show you.  I always tell my clients once I have pre-approved them to be careful not to incur further debt.  Incurring debt both lowers your purchase power and your credit score.











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