Things To Consider Before Buying A Home
For many people, buying a home is the single most important investment they will make in a lifetime.
The so-called “right time” is different for everyone. Before making a decision to buy a home, ask The Covenant Team at Service First Mortgage to help you answer the following questions.
CAN I QUALIFY FOR A MORTGAGE?
The best way to determine this is to figure out your debt-to-income ratio and credit summary. This is determined through a calculation of monthly debts against your gross income. More specifically, if an individual earns $60,000 per year, his or her gross monthly income is $5000. Under the 45% DTI ratio guidelines, this person’s maximum total monthly debts including the new mortgage shouldn’t exceed $2200
HOW MUCH CAN I AFFORD?
This will depend on how much money you plan to bring as a down payment. If you are able to make a down payment of 20% of the sales price, or more, you can save around $50 to $250 a month on monthly mortgage insurance. Then there are several loan programs available that your mortgage Experts, The Covenant Team, will advise you on. They will assist you with structuring your loan to allow for maximum savings.
HOW’S MY CREDIT?
All lenders require a credit report that contains personal financial information such as loan payment information, bank and credit card accounts, etc. We will be happy to review this information with you in detail so you will know exactly where you stand regarding credit and your buying power.
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