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PREPARING YOUR F I N A N C E S
Mortgage lenders recommend you do not stretch yourself beyond buying a home that is more than 3 to 5 times your annual household income. If you are not purchasing a home with cash, you will need a mortgage pre-approval provided by your mortgage lender. A lender will work with you to get a loan that meets your needs. Some buyers are concerned with keeping their monthly payments as low as possible, while others want to make sure that their monthly payments never increase.
A Down Payment is typically between 3.5% & 20% of the purchase price Earnest Money is money you put down to show you’re serious about purchasing a home. It’s also known as a good faith deposit. Closing Costs for the buyer run between 2% & 5% of the loan amount A Home Inspection costs around $500. In order to make your dream of buying a home a reality, you will need to save cash for your down payment, earnest money, closing costs & home inspection.
YOUR HOMEWORK
Study your credit report. Make note of any errors you see and talk to your lender about them.
Compile necessary documents, including pay stubs, bank statements, and past tax returns.
Determine how much of a payment you are comfortable with. Don’t forget you will have taxes and insurance on top of your base mortgage payment!
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