Starting the Mortgage Process
Last week, we looked at how to manage student loans and a potential mortgage. This week we will see how to get your foot in the door of financing! This article can be found in the same place as the student debt article we discuss last Wednesday, Housing Buzz by Union Home Mortgage! Please go check out "5 Ways to Get the Mortgage Process Started".
1) Go talk about money before you look at homes! This will help you understand how much money you can take out for a home before you go fall in love with a house that is simply too expensive. Our preferred lender, David Stringer, is actually with Union Home Mortgage. If you have even the smallest desire to buy a home of your own, go talk to David and see how he can help!
2) Pay off as much debt as you can first. Last week, I mentioned "debt- to- income ratio" which is the amount of money you make vs. the amount of money you owe each month, so it is typically a good idea to rid yourself of as much debt as possible in order to get approved for a loan. So, you should work toward zero balances on credit cards at the end of each month, and no major loans (or consistent payment history on those loans if paying them off isn't possible).
3) Refinancing or consolidating student loans. This was what we talked about last week! Check out this article if you are curious!
4) Show solid work history! Lenders just want to know that they will get their money paid back! So if you can prove that you can keep a job that will help pay for your loan, they will be incredibly happy!
5) Be prepared to document everything! Like I said, lenders want their money back, so they will ask for everything under the sun to ensure that you can pay them back! It is not uncommon for lenders to ask for old light bills, rental history, pay stubs and bank statements! It feels overwhelming, but cooperation will make the process a breeze!
If you're curious about where you stand, and whether or not you can buy, reach out to our guy David and see if he can help! The first step is to fill out his quick mini application here. If you're not quite ready for that, he can be reached at 479-264-3099!