Do you really have a good solid game plan? I received a referral today; a family wants to buy a home. I’ve always been a firm believer in buying a home on paper first. Finding a home and then looking at all the numbers is backwards. It’s best to buy on paper first, and then go see if that home exists in the real world. What I mean by that is looking at all the numbers first. Income, cash and credit are the three biggies; if you have two of the three you probably can buy a home. Buying a home on paper is free, gets a game plan started and keeps you focused. I use software which presents all the above on one screen or one piece of paper.Your total income can be figured in many different ways depending what you do for a living and how your federal tax returns are completed. Often the cash needed to buy a home is less than you may think. You may feel your credit is not so good, but in a mortgage lender’s eyes, it’s just fine.
Credit Scores
I like to begin by pulling your credit report. There are three Credit Bureaus in the US, Equifax, Experian and TransUnion. Creditors can report to some or none, however most report to all three bureaus. All three generate an overall numeric score, typically the mid score is used by mortgage lenders and banks. I’ve worked for years and years with derogatory credit. Late payments, collections, charge-offs, judgments, tax liens, public records, foreclosure, Short Sale, Modifications, and Bankruptcy, to name a few. Most of the time your credit can be improved which improves your credit scores too and that improves your interest rate on your mortgage. Credit it’s one of the keys to qualifying for a home mortgage and a lot of times people aren’t aware of exactly what is showing on their credit. Sometimes credit can be cleaned up quick sometimes it takes longer. Some believe bad debts fall-off or go away after seven years, they don’t. I can explain how to improve your credit.
Buying a Home is in the Numbers
The numbers are next. How much home do you qualify for? It’s most often best to qualify for the max the lender will allow and then buy at your comfort level. I can run different price scenarios for you. You get to make the big decision and decide at what price you buy. The PITI and MI. Principal Interest Taxes and Insurance and in some cases there’s Mortgage Insurance. I determine your income details, input an estimated interest rate and loan term, select a sales price and down payment, calculate accurate property tax figures, estimate insurance costs, calculate MI if needed, add in HOA (Home Owner Association) dues, and adjust all figures so your debt to income ratio meets lender guidelines. It seems more complicated than it is. Now is it time to draw the line and pay your own mortgage, not your landlords? In twenty minutes I’ll give you a good solid game plan, for free. Call, text or email anytime.
