Buying a home might be the most important financial transaction you’ll make in your life.
If you’re looking to become a homeowner, you’ll likely be considering a mortgage to help you finance the purchase.
Here are Five things Bam thinks every home buyer should know about mortgages:
Tip #1. Have your documents ready:
The mortgage process requires quite a bit of paperwork, having the documents beforehand can save you lots of time. A loan officer will need to verify your income and tax documents.
Tip #2. Choose the right type of mortgage loan:
There are many different types of home loan programs available. Conventional loans are usually the cheapest types of mortgage for someone with 30% down and good credit (640 +).
Tip #3. Have a little extra cash in reserves:
We don’t advice our clients to use all their savings for down payment. Do not deplete all of your savings just to qualify for mortgage. The more reserves you have the better. Having a large amount of savings can sometimes make it a little easier to qualify for a mortgage
Tip #4. Improve your credit score before applying:
Everyone should make sure their credit score is as high as it possibly can be. If you high credit card balances, pay them below 15% of the credit limit. Dispute negative account information with the credit bureaus. If you have a friend or family member with a credit card in good standing have them add you as an authorized user.
Tip #5. Buy what you can afford:
Your debt to income, or DTI. Is the amount of monthly debt payments you have compared to your monthly income. Most mortgages will allow a maximum DTI of 41%, ideally you will want a DTI ratio of no higher than 36%. See how much house you can afford using our calculator. Try not to stretch yourself too thin, if you have a high DTI you will be more likely to miss mortgage payments if an emergency comes up.
At Bam Properties, we guide our clients through the mortgage process thus making it easy for you to own a home
If you are ready to be a home owner through Mortgage, then call 08143233064 to get started.