Home Mortgage DO’s and DON’Ts
- Have a realistic budget. At least four to six months before you want to begin a serious search for a home focus on remaining within a budget, indicating you have the ability to save while paying off debt.
- Know what totally monthly home payment gives you peace of mind, in a nutshell, what dollar amount each month are you comfortable with.
- If you owe any credit card debt, do your best to pay it off to eliminate interest costs, as well as, indicating you are a good credit risk.
- Save as much money as possible toward the down payment, lender closing costs, third party fees and set up of your escrow account.
- Read up about the benefits of home ownership over one’s life time.
- Watch your spending habits. Debt to income is an important part of a lender’s decision as to how much of a home loan payment can you afford while paying any consumer debt, student debt, automobile debt. lender’s generally do not want to see a total debt to income exceed 38.00%.
- If you are thinking of purchasing a home which needs renovation, let’s discuss if a loan for the purchase and repairs, an all in one product, could be a good fit for you.
- Learn about the property taxes in the area you are wanting to purchase in.
- Don’t take on any new consumer or automotive debt.
- Don’t have more than three to five inquiries on your credit report.
- Don’t have any overdrafts on your checking account.
- Don’t go over your credit limit on your credit cards.