Knowing how much home you can comfortably afford is key! Let's estimate your buying power based on what lenders typically look for. By answering a few quick questions, we'll get you on your way to finding your perfect home within your budget. We use standard lender guidelines to give you a clear picture of what's possible. Let's get started!
Click here to Pre-Qualify.
While you can estimate your buying power, getting pre-approved for a loan adds an extra layer of confidence. This involves verifying your income, credit score, assets, and liabilities to get a clear picture of what you can borrow.
Here's why pre-approval is a smart move:
More on Pre-Qualification
LTV and Debt-to-Income Ratios
FICO™ Credit Score
Self Employed Borrower
Source of down payment
LTV and Debt-to-Income Ratios
LTV, or Loan-to-Value ratio, tells you how much of the home's value the lender is willing to finance. The good news is, lenders can be flexible, especially for borrowers with strong credit. They might offer loans for up to 100% of the value in some cases!
Another factor lenders consider is your debt-to-income ratio (DTI). This ratio compares your monthly debt payments (car loans, student loans, etc.) to your monthly income. Ideally, your mortgage payment shouldn't take up more than a third of your gross income. So, if you have a high DTI, you might need a larger down payment to bring down your LTV and qualify for the loan.
Understanding Your Credit Score: The Key to Great Rates
Your credit score is a big deal! It's a number used by most lenders to assess your creditworthiness, basically how likely you are to repay a loan on time. The higher your score, the better your chances of getting approved for loans and securing fantastic interest rates.
Here's a breakdown of what goes into your credit score:
When you're shopping for loans or credit cards, lenders might check your credit report. This creates an inquiry, which can slightly impact your score. But here's the good news: these inquiries typically have a minimal effect, especially if they happen within a short window (like 30 days). So don't be afraid to shop around and compare rates!
Our advice? Be strategic when applying for new credit. Once you've narrowed down your options and are ready to move forward, then you can authorize the lender to run a full credit check.
Self-Employed Homeownership: We Can Help!
Being self-employed shouldn't hold you back from homeownership! While there can be extra steps involved in the mortgage process for self-employed borrowers, we're here to guide you through it seamlessly.
The key thing for lenders is understanding your income stability. Unlike traditional pay stubs, self-employed individuals rely on tax returns to document their income. Typically, lenders need tax returns for the past two years to get a clear picture of your financial situation.
We understand navigating this process can feel overwhelming. That's why we're here to answer your questions and make getting your mortgage smooth sailing! Let's chat and get you on the path to your dream home.
Down Payment Options: Let's Find What Works for You!
Every homeowner needs a down payment, which is essentially your upfront contribution towards the home's purchase price. Lenders typically prefer a down payment from your own savings.
But what if you haven't saved the full amount yet? There are still options! In some cases, "gift funds" from a generous family member or friend can contribute to your down payment. These gifts need to be documented with a signed letter stating they are truly gifts and not loans that need to be repaid.
We can help you explore all your down payment options and find the strategy that best suits your financial situation. Let's chat and get you closer to homeownership!
When it comes to home loans, there's no one-size-fits-all approach. The best loan for you depends on your financial goals and situation. Here's a breakdown of the two most common types of mortgages to help you decide:
Fixed-Rate Mortgages:
Adjustable-Rate Mortgages (ARMs):
Choosing the Right Loan:
By considering your financial goals, risk tolerance, and how long you plan to stay in your home, you can select the loan that best suits your needs. We're here to offer professional guidance and help you find the perfect mortgage match! Let's chat about your options and get you started on your homeownership journey.
Getting your mortgage approved can seem complex, but we're here to guide you through it step-by-step! While lenders follow general standards, loan approval guidelines can vary depending on the specific loan program. The main factors considered are:
Once you submit your loan application, we'll get to work verifying all the information you provided. This might involve:
Helping Your Application Shine:
Here are some tips to streamline your loan approval process:
We understand navigating the mortgage process can feel overwhelming. That's why we're here to answer your questions and make getting your loan approved a breeze! Let's chat about your homeownership goals and get you started today.
Once your loan is approved, it's time to celebrate! You're just a few steps away from owning your dream home. Closing refers to the final meeting where you'll officially sign your loan documents. Here's a rundown of what to expect:
Important Note: For owner-occupied refinance loans, federal law mandates a 3-day waiting period after you receive the final loan documents before the closing can occur. This allows you ample time to review everything thoroughly.
We'll be there every step of the way to guide you through the closing process and answer any questions you might have. Let's get you settled into your new home!
