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Where Should I Start?
An important first step in your home search is to talk with a lender about your financing options. The world of financing can be intimidating, but a good lender will walk you through the process and answer any questions you have. This is a big financial decision, after all. We have lenders that we have worked with and trust to provide you with superior service, and we would love to connect you with them.
What To Expect?
Since a mortgage is typically a large loan, the lending institution wants to see a total picture of your finances—both assets and liabilities.
- The lender will pull your credit report, which impacts what your interest rate will be. If you are not happy with your score and decide to wait, a good lender will talk with you about a plan for improving your score. They will also ask you about any debt or certain regular payments such as a car lease or loan, credit cards, child support, etc.
- The lender will also ask you about your assets, so when you talk with them you’ll want to have an estimate of your income, bank account balances, retirement accounts or stocks. As you move closer to your home purchase your lender will request documentation for all of these items, so it’s never too early to start getting things together.
- After going over your credit score, assets and liabilities, the lender will talk with you about what dollar amount you are pre-approved for. This amount can be useful as an estimate of how much you can afford to spend on your home. This pre-approval documentation proves that you ready and able to purchase a home and will be vital when submitting any offers.
Be Careful With Your Finances.
If you are considering a home purchase, now is not a good time to make sudden career changes or large purchases. This includes buying or leasing a new car, opening credit cards, or purchasing furniture using credit. You want to approach your property purchase from a position of financial stability. If you are considering making any significant changes, it’s best to hold off until after you’ve had a chance to speak with a trusted lender and can consider all of your options.