How Much Can I Afford

Obtain a free credit report  from www.annualcreditreport.com. Check for errors. Pay down credit card debit. Don't make any large purchases, open any new accounts, nor close your oldest credit accounts. Be sure you have the right verifiable tradelines and a low debt to income ratio.

Tips for saving for a down payment include setting aside tax refunds, work bonuses, inheritances, cutting back on all monthly expenses, set up an automatic savings plan with your bank and use a  savings app to track your progress.  Generator extra income. Investigate down payment assistance programs and your companies 401K policy pertaining to withdrawals if you need it.

Begin to collect documents that you’ll need to verify your income, employment, assets and debts for the mortgage application. Such as 2 years of pay stubs,  employment history, W-2’s, bank statements, residence history, etc. If your not already working with someone ask your family, friends or Real Estate agent for a referral. 

Once your pre-approved normally a budget is set you'll want to decided how much you are willing to pay for a home? Buy the least expensive home in the best neighborhood you can afford. This will allow the home’s value room to grow. Lenders generally recommend that people look for homes that don't cost more than 3-5 x's their annual household income. Use the mortgage calculator to help you determine an approximate payment.

 Find a real estate agent. Start looking at neighborhoods and other amenities that are close by that are important to you. Go house hunting and visit open houses. Look past the surface, pay attention to the value of the homes and business in that area. Research the school districts.

 Typically, purchase offers are contingent on a inspection of the property to check for signs of structural damage or things that may need fixing. Once all contingencies have been met you'll get the green light for closing. Three business days before your closing date, the lender will provide you with a closing disclosure that outlines all of your loan details, such as monthly payment, loan type and term, interest rate, annual percentage rate, loan fees and how much money you must bring to closing. Other things to be aware of and familiar with are prorated property tax, HOA fees, earnest deposit and homeowners insurance.