1. Can I qualify to purchase a home?
The first thing you should do is see a loan officer to see if you qualify. The loan officer will tell you how much you can afford for your mortgage and if you need to do anything to your credit. The loan officer should collect documents from you and pre-approve you for a mortgage. This document will tell you how much of a mortgage you can afford. If the loan officer tells you that you can afford a $200,000.00 mortgage, then you may want to consider not spending more than $180,000 to $190,000. This will leave you with a little cushion for other expenses each month.

2. Are you planning on moving any time soon?
Purchasing a house is a long term investment. If you try to sell or move to soon, you will lose money. If you are planning on moving soon, then you should not buy at this time. The first years of payments on a mortgage go to the interest. You do not start paying the principle until 1 to 2 years.

3. Documentation required to obtain a mortgage
A loan officer or mortgage broker will require a social security card, drivers license, bank statements, asset statements, one months’ pay stubs, and w-2s for the last 2 years. After your loan application is complete, your loan officer will continue to ask for updated pay stubs, updated bank statements and verification of employment.

4. Is your job security strong. If you think that there is a possibility that you may be laid off or forced to move to another location to keep your job, then this may not be the time to purchase a home. Job loss is what causes foreclosures and short sales and it takes a couple of years to bounce back.

5. Is your family status going to change? Are you going to get married or have children
soon. Then you might want to think about purchasing the house with your spouse. If you are going to have children, then you will want to think about the neighborhood and schools before you buy.

6. Are you prepared for some of the other expenses that go along with purchasing a house?
There are many no down payment loan programs that allow you to include closing expenses. So if you do not have a lot of money saved, it is no big deal. You will need money for an earnest money deposit, appraisal, and home inspection. That is usually around $2500.00 total.

Cash is King and Credit is Power. You need both cash and credit to purchase a home. If you have credit issues and are looking to purchase your dream home, do not despair. We have been helping buyers to solve credit problems and locate unknown sources of financing to purchase their dream homes for 8 years. We are home buying/credit specialists who know how to successfully help people who have been pushed out of the housing market by no fault of their own become home owners again. These people could have been pushed out by job layoffs, divorce, medical illness, etc.

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