Think you can’t afford a down payment? Or that your credit score is keeping you from buying your first home?
We’re here to help you go from never — to now.
Opening doors for first-time homebuyers
A pre-approval will help us determine your ideal price range. This process is usually quite fast, and many homebuyers receive a preapproval letter in a matter of days.
You’ll need to submit an application and provide details such as:
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Your household income
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Your savings
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Your existing debt (e.g., credit cards or student loans)
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Your personal credit score
Your mortgage preapproval letter will only be valid for 30 to 90 days. Other things can alter the terms of your initial approval, including:
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Major changes in your income or debts
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Changing jobs
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Altering your investments
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Depleting your savings
THE MORTGAGE PROCESS
DO
• Get pre-approved so you can make a strong offer
• Be thorough and honest on your application
• Continue to pay your rent or mortgage, loans and credit cards on time
• Keep your current job and income, and contact us right away if either one changes
• Have your important documents handy (especially your W-2s, tax returns, and pay stubs)
• Make any major purchases (furniture, cars, boats, those sorts of things)
• Apply for new credit accounts, close existing accounts, or co-sign loans for others
• Make large cash deposits into your bank account other than your paycheck
• Spend your down payment or closing cost money
• Plan a vacation during your loan process
DON'T
Buying a house for the first time
Understanding Your Credit Report
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Pay your bills on time — 30+ days overdue bills can lower your score by 10 points
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Try not to close accounts— Keep old credit accounts open and active
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Minimize credit applications — Don’t apply for credit you don’t need
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Keep your balances low— A 30% ratio of balances to available credit is ideal
What Makes Up A Monthly Mortgage Payment?
Your monthly mortgage payment is made up of four parts:
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Principal — a portion of the amount borrowed or remaining unpaid
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Interest — the amount charged by the lender for borrowing money
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Taxes — the amount charged by the municipality based on the property value
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Insurance — policy that protects you against financial loss in the event of property damage
Your Debt-to-Income Ratio
To find out if you can make a mortgage payment, mortgage lenders review your income over the last two years. And if you have variable income because you’re self-employed or operate on commission, no problem — it’s to understand your debt-to-income (DTI) ratio. Which is your monthly debt against your income. Typically, the lower your DTI, the more financing options you have.
How Much Do I Need For A Down Payment?
You don’t have to put 20% down to own your first home. Of course, you can, and it has plenty of advantages. But many home loan programs allow you to buy a home with as little as 3% down — or even NO money down with down payment assistance!