Do’s and Don’ts

Do's:

  • Get pre-approved for a mortgage before you start looking at homes. This will give you an idea of how much you can afford to borrow and will make the homebuying process go more smoothly.
  • Be prepared to provide documentation of your income, employment, and assets. Lenders will need this information to assess your creditworthiness.
  • Shop around for the best interest rate. Interest rates can vary from lender to lender, so it is important to compare rates before you choose a lender.
  • Be patient. The homebuying process can be long and complicated, but it is worth it in the end.

Don'ts:

  • Don't wait until the last minute to get pre-approved for a mortgage. This could delay the homebuying process and make it more difficult to find a home that you can afford.
  • Don't be afraid to ask questions. The mortgage qualification process can be confusing, so don't be afraid to ask your lender questions about anything that you don't understand.
  • Don't make any major purchases before you close on your home. This could impact your debt-to-income ratio and make it more difficult to qualify for a mortgage.
  • Don't sign anything that you don't understand. Before you sign any paperwork, be sure to read it carefully and ask questions if you don't understand something.

By following these do's and don'ts, you can increase your chances of qualifying for a mortgage and buying the home of your dreams.

Here are some additional tips that may be helpful:

  • Get your credit report and make sure it is accurate. Any errors on your credit report could impact your ability to qualify for a mortgage.
  • Start saving for a down payment. A larger down payment will lower your monthly mortgage payments and make you a more attractive borrower to lenders.
  • Get a good idea of your monthly housing costs. This includes your mortgage payment, property taxes, homeowners insurance, and utilities.
  • Consider a fixed-rate mortgage. This will give you peace of mind knowing that your interest rate will not change over the life of your loan.
  • Shop around for a lender. Interest rates can vary from lender to lender, so it is important to compare rates before you choose a lender.
  • Get everything in writing. This includes the terms of your mortgage, the closing costs, and any other fees associated with the loan.

Buying a home is a big decision, but it can also be an exciting one. By following these tips, you can increase your chances of getting approved for a mortgage and finding the perfect home for you.

Here are some additional tips that may be helpful:

  • Get your credit report and make sure it is accurate. Any errors on your credit report could impact your ability to qualify for a mortgage.
  • Start saving for a down payment. A larger down payment will lower your monthly mortgage payments and make you a more attractive borrower to lenders.
  • Get a good idea of your monthly housing costs. This includes your mortgage payment, property taxes, homeowners insurance, and utilities.
  • Consider a fixed-rate mortgage. This will give you peace of mind knowing that your interest rate will not change over the life of your loan.
  • Shop around for a lender. Interest rates can vary from lender to lender, so it is important to compare rates before you choose a lender.
  • Get everything in writing. This includes the terms of your mortgage, the closing costs, and any other fees associated with the loan.

Buying a home is a big decision, but it can also be an exciting one. By following these tips, you can increase your chances of getting approved for a mortgage and finding the perfect home for you.

Lease or buy?

Interest rate or cost of ownership? – the right financing is critical to your family’s financial health.

  • When you're buying a home, there are two important factors to consider when choosing a mortgage: interest rate and cost of ownership. The interest rate is the percentage of the loan amount that you pay in interest over the life of the loan. The cost of ownership is the total amount of money you'll spend on your home each year, including mortgage payments, property taxes, homeowners insurance, and other expenses.
  • Interest rate: A lower interest rate will save you money on your monthly mortgage payments. However, it's important to remember that interest rates are just one factor that affects the cost of your mortgage. The term of your loan, the amount of your down payment, and the type of mortgage you choose will also affect your monthly payments.
  • Cost of ownership: The cost of ownership is more than just your monthly mortgage payment. You'll also need to factor in property taxes, homeowners’ insurance, and other expenses. Property taxes are typically assessed by the local government and are based on the value of your home. Homeowners insurance protects your home from damage caused by fire, theft, and other hazards. The cost of homeowners insurance will depend on the value of your home and the type of coverage you choose.
  • The right financing is critical to your family's financial health: When you choose the right mortgage, you can save money and build your financial security. Our team of experienced loan officers can help you find the right mortgage for your needs and budget. We offer a variety of mortgage products, including fixed-rate mortgages, adjustable-rate mortgages, and government-backed loans. We can also help you with down payment assistance and other programs that can make homeownership more affordable.
  • Contact us today to learn more about how we can help you achieve your dream of homeownership.
  • We can add more details and information as needed. But this should give you a good starting point.

Understanding Credit Use and how it affects credit scores.

Your credit score is a number that lenders use to determine how likely you are to repay a loan. It is based on a variety of factors, including your payment history, the amount of debt you have, and the length of your credit history.

There are two main types of credit scores: FICO® scores and VantageScore® scores. FICO® scores are the most commonly used credit scores, and they are used by Mortgage Lenders. VantageScore® scores are a newer type of credit score, and they are yet to be adopted by the Mortgage Industry.

Your credit score can range from 300 to 850. A higher credit score means that you are a lower risk to lenders, and you may qualify for lower interest rates and better loan terms.

There are a few things that you can do to improve your credit score:

  • Pay your bills on time. This is the most important factor in determining your credit score.
  • Keep your credit utilization low. Credit utilization is the amount of debt you have compared to your available credit. A good goal is to keep your credit utilization below 30%. Do not close out open revolving credit lines even if they are at a zero balance, this can have an adverse effect on your credit scores.
  • Lengthen your credit history. The longer your credit history, the better.
  • Avoid applying for too much credit too often. Hard inquiries, which are when you apply for new credit, can temporarily lower your credit score.

If you are looking to improve your credit score, there are a few things that you can do:

  • Get a copy of your credit report and review it for errors. If you find any errors, dispute them with the credit bureaus.
  • Use a credit monitoring service. A credit monitoring service can help you track your credit score and report any suspicious activity.
  • Consider working with a credit counselor. A credit counselor can help you develop a plan to improve your credit score.

By understanding credit use and how it affects credit scores, you can take steps to improve your credit score and get approved for the loans that you need.

Contact our team today to learn more about how we can help you improve your credit score and get approved for a loan.