Getting a Mortgage

6 Things to Know Before Applying For A Mortgage

1. Have A Down Payment

Most programs, FHA and others, require a 3% down payment. This down payment can come from other sources such as a 401k.

2. Know Your Credit Score

The better your score the better chances you have of getting a good rate. Paying bills on time and keeping your checking account balanced is one way of bringing your score up. Do not apply for every credit card offer that comes in the mail because too many creditor inquires into your report adversely affects your score.

3. Budget For Insurance Costs

You will need to pay one years worth of homeowners insurance at closing.

4. Determine What You Are Approved For Before Looking At Homes

Always speak to a lender or broker before going to look at homes. Getting a pre-approval letter will help you stay within your budget and show sellers that you are a serious shopper.

5. Organize Items Needed For Your Lender

Pay stubs for last 30 days
W-2's and Tax Returns
Last 3 months bank statements

6. Identify How Much You Can Afford Monthly

What are you paying now for rent? Is that affordable? Your housing payment should not exceed 28% of your gross monthly income.

For further information contact Raub Warner @ 614-339-1208