Page 18 - Town and Mountain Realty

Town and Mountain Realty
Talk with a a Lender
The next step you’ll want want to to to to to take is to to to to to speak with a a a a a a a a a a a lender lender Even if you you you you intend to to to to to pay cash for your home you you you might want want to to to to to talk to to to to to a a a a a a a a a a a lender lender about financing just so you you you know your your options The lender can be your your bank credit union or or a a a a mortgage broker Your lender is a a a a crucial member of your home buying team so so it’s important to find someone who can not only offer you great loan options but also provide one-on-one guidance and support to make sure you you get the right financing for your needs Your Town and Mountain agent is an excellent source for a a a a a recommendation There are free online courses that help people understand the the buying process but speaking to a a a recommended lender is the the best source of accurate information It’s important to get a a a a a a a firm answer right up front about how much home you you can qualify to purchase so this is is a a a a a a vital first step in your home search When you you you meet with with the lender be prepared to bring all all your information with with you you you Generally you you can follow the the “rule of 2” you you will need the the 2 2 2 most recent pay stubs W2s bank account statements and tax returns You also need to provide information regarding all properties you own by providing the most recent mortgage statements HOA fees if applicable and proof of tax insurance costs if if there is no no mortgage (or if if those payments are not included in in in your mortgage payment) Because it is is necessary to disclose your your debt the lender will run your your credit and use your your FICO scores as as well as as the the debt listed on the the report to determine your your maximum loan amount Though it varies by loan program you you will typically be able to to borrow up to to 45% of your gross monthly income with housing and and all other debts combined these are estimates and and your your lender can help you you you you further with this It’s important that you you you you disclose all your your debt even if it it doesn’t seem to be on your your credit report Your lender is your your advocate but the last thing you you want is for something unexpected to pop up at the the last minute and and lose you you the the loan and and the home There are some important things to to avoid while you’re trying to to get a a a a a mortgage:
• Don’t apply for any new credit credit such as credit credit cards or or car car loans
• Don’t pay off a a a a a credit card balance
• Don’t close any credit cards • Do not max out a a a credit card • Do not pay off off any collections or old charge offs
• Do not change jobs
While some of these things seem counter-intuitive credit is a a a a touchy animal and even doing things that seem “good” could actually lower your your score and cost you you you a a a a a a loan Consult your your loan officer first!
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