So You Want To Buy A House? Be Prepared.
The time has come. You’re ready to look for a new home. This is such an exciting time, but it can also be very stressful. At Call Federal, our dedicated mortgage team is here to make things less stressful, with the goal of making the whole process can be enjoyable from the beginning of your search to the closing of your loan process.
Here are a few things you’ll want to do as you begin the home buying process
Meet with your Call Federal Mortgage Loan Consultant
We’re here to help! And the sooner you come to us, the easier it will be for us to guide you through each stage of what can be a confusing and technical process.
Establish Your Goals
Start by answering the big questions surrounding the purchase of a house. Use an online mortgage calculator to figure out how much you qualify for and, as it’s sometimes different, how much you can actually afford. Will you have cash for a down payment or closing costs? Is your credit history aligned with the size of purchase you intend to make? Are their things you can do to improve credit score in the short-term to enhance your purchasing power? What type of house are you looking for? A fixer-upper? A manicured subdivision with an active Homeowners Association? The answers to any and all of these questions will start to guide you along the way to your new home.
The details of your employment situation will also be key to your mortgage process. Answers to questions like how long have you been at your job and do you receive overtime, bonuses, or commissions will be necessary to share with your loan consultant. How many hours you work during an average week, the nature of your compensation, whether you’re salaried or hourly, contracted or self-employed will also be considered. Lenders like to see continuity, whether in your given field or with your company. If you’ve just graduated from school, an unofficial copy of your transcript is also helpful addition to your mortgage application.
Assess Your Assets
As you move further along in the process, how you actually intend to pay for your mortgage will become more and more important. Do you have savings to put towards the cost of your new home? Are you expecting a large financial gift from a family member that will be a part of your commitment to your new property? In some cases, you may also be able to use a portion of your retirement fund to put towards a major purchase like that of a new home. Our loan consultants will be happy to walk you through all these options to make sure you proceed in the way that makes the most sense for you.
Building A Budget
The final tip I’d like to share with you in this first installment of our mortgage series has two benefits. Say, for example, you are currently paying $600 a month in rent or mortgage, but your new place will likely push that monthly cost to $900. If you open a separate account and put that additional $300 away, you’ll not only have additional cash to put towards your closing costs, but you’ll also demonstrate to a lender that you won’t be ‘shocked’ by the increased monthly payments. A win-win!
That’s all for part one of this series on preparing you to make the most of your mortgage process. Next time, I’ll share some DO’s and DON’Ts that you’ll encounter after you’ve found your next house and all the steps to make it truly yours. If you’d like to get your process started today, give us a call at 804-274-1200 or via email: [email protected]. Thanks for reading!