3 Steps to Homeownership

    3 Steps to Homeownership
    Are you considering buying a home? If you have these three easy steps in place, buying a home could be within reach.
    1) Reliable/Stable Income
    In order to qualify for a mortgage, you must have a reliable income.  Living paycheck to paycheck is not conducive to owning a home or having monthly mortgage payments. Home ownership comes with many unexpected costs which can come along at any time. If you are on a tight budget, these costs can break the bank. Before being approved for a mortgage, your lender will confirm you have a reliable income source, in order to support the interest, payments and property taxes for your new home. Your lender will also consider any other monthly debt obligations you currently have.
    2)Access to a Down Payment
    You need at least 3% down, plus enough funds available to cover the closing costs. Closing costs include legal fees, property taxes and any additional moving expenses. Basically, the lender will look to confirm you have enough funds on hand so you won’t be short on closing date. It also looks good to the lender if you have additional savings as well. You need to be in the healthy cash-to-debt range, especially if you are first time home buyer. The stronger you are in this regard, the better your chance at qualifying.
    3) Low to No Debt
    When taking on a mortgage, your non-mortgage debts are an important consideration when determining what you can qualify for. The more debt you have, the less mortgage you can qualify for. Have you maxed out all your available credit? What are the minimum payments for what you owe? These are all factors your lender will consider when determine what you qualify for. Reducing your debt levels before applying for a mortgage is always a good thing.
    If you are unsure about home ownership, speaking with an experienced realtor can help answer many of your questions and hesitations. You should do plenty of research before committing. Know what you are getting into before signing on the dotted line. The team at Jacobo Realty Group is a valuable resource for you to determine if you are ready to buy a home and what you can do in order to prepare for it in the future. Please contact us with any questions you may have.

    Trackback from your site.

    Leave a Reply