First Time Home Buyers
Congratulations, you have decided to make the giant step towards home ownership. Hopefully the following information will allow you to take the leap into the buying experience with your eyes wide open. Please remember if at any point, you would feel more comfortable speaking with a licensed professional loan officer, simply call us at 518-690-2232 or toll free at 1-877-266-7722. There is never an obligation or fee to speak with a representative.
So let’s get started! Before you start picking out furniture or purchasing the white picket fence it is important that you ask yourself, “how much can I afford to pay for a home?” The easiest way to determine in what price range you should be shopping is to get prequalified. You can get the process started online or by calling a representative at the numbers listed above.
Each of us is an individual and thus has individual financial needs. Although a website should allow you to get the pre-qualification process started, you should still plan on spending a few minutes with a loan officer to discuss both your short and long term goals.
The pre-qualification process will include reviewing your credit history and obtaining your credit scores. Credit scores are designed to help predict a consumer’s likelihood of repaying a debt. Like any database of information, credit reports may contain inaccuracies that will more than likely need to be corrected. The earlier in the process that you review your credit report the less likely that there will be delays in closing your mortgage.
Along with reviewing your credit history, the pre-qualification process will require income information on all borrowers. Incomes on mortgage applications are broken down to include your gross monthly income (before taxes are taken out). A calculation is then completed to determine your debt to income ratio which is then used to determine how much of a mortgage payment that you could afford. The allowable mortgage payment is then entered into a calculator to determine how much of a mortgage you would qualify for.
Another key component of the pre-qualification will focus on borrower’s assets. How much money do you have to put down? Do you have enough funds for closings costs and setting up an escrow account? The answers to these questions will help the loan officer suggest which product is right for you.