So your thinking about buying a new home. Making a home purchase is a big decision. Maybe your 1st one ever or maybe your an experienced homeowner. Either way, there are things to consider before you take the big jump. The single most important element of buying a new home is to get pre-Approval for a new home mortgage. Even before you start your home hunting efforts.
Mortgage lenders usually offer a pre-Qualification which is where a lender takes the data & information you have supplied and calculates that your income , credit can qualify you for a loan of so much. This is usually not a good way to go as the calculation for a mortgage is much different that what you may think and after you think you are ready to purchase, you find you actually do not qualify.
As an example, mortgage qualification uses 2 years of income averaged to determine your monthly pay. Many prospective buyers put the amount of their last paycheck or current monthly rate, so they can get a big shock later.
The 24 month number, also needs to be shown it will continue. At that or more for the next 3 years. You might have earned a high salary last year. But now, it is much less & the current earnings are used to determine your qualification.
The answer to all of this is to only get a pre-Approval from the lender. That means a review of all your documents and a credit report have determined. . You are approved to purchase for a specific amount. This usually means your income has been determined & monthly debts added from the credit report. Then the new house payment, taxes, insurance & HOA if any, have been added and all of that comes up to about 50% or less of your gross income.
Charles ( nmls# 96665) is employed by an FDIC Bank and does Mortgages to Homeowners in all 50 States thru the Bank. UMS PROS does not do Conventional Mortgages. Please contact Charles for Home Loans info at: firstname.lastname@example.org.
If you are purchasing an Investment property, please contact Zee for more information. UMS PROS does loans to your LLC for non occupied Investment properties in all States except California & Nevada. email@example.com