To a lot of people, it can be intimidating, to begin the process of determining your financial status, when deciding to buy a new home.
A lot of people have questions, but aren’t sure what the first step is, in the process. If you have a trusted Realtor® by your side, it can be much easier for you!
Here is a general description of what to do:
- Ask a few trusted people, including your Realtor®, who they would recommend as a qualified mortgage lender.
- Call the lenders you would like to talk to. This call is free, confidential and usually only takes a few minutes. You will usually be able to give them basic information, over the phone, to determine your credit score, and they will be able to tell you what score you will need to qualify.
12=*If your score is lower than needed at the moment, you can ask them for recommendations, and an estimated time-frame it may take, to have the score you need. A good lender will be the same as a good agent, as far as, we will not fault you for needing time to reach your goals, and will stick by you through the process of getting there! That’s what we are here for, to support you, and see you through to the end!
After they have determined your score, they will need information to figure out your debt-to-income ratio, which is our term for describing how much money you have, in relation to, how much money you owe. This ratio will tell you how much mortgage you can qualify for. This number, along with your personal comfort level, will tell us what price range of homes we should begin looking at.
Qualified professionals know it is hard for some people to open up about finances, for a lot of different reasons, and they will make this an easy, comfortable call for you. The demeanor and skills you are met with, will help you to see who you want to continue to work with!
*Documents you may want to have on hand for determining debt-to-income are as follows: (You do not have to have these to make the initial call, but if you proceed further with a lender, you will need them handy.)
- Last 2 years W-2’s and Tax Returns
- Last 2 Pay Stubs
- Last 2 months Checking & Savings Statements
- Last 401K and/or Retirement Statement