In these challenging times it is easy to think that it is impossible to get a mortgage if you spend too much time watching the news. The truth of the matter is that there is still plenty of mortgage money still available, but the qualifying guidelines have changed somewhat. If you are considering purchasing property, but are wondering if you can meet the qualifying guidelines there are a few simple steps you can take to give yourself some confidence.
The first step for someone considering purchasing a new home and taking on a new mortgage is to consider the additional expenses they will be incurring. They need to determine the new Real Estate Taxes, Homeowners insurance, POA fees, and the mortgage payment. Once they have a reasonable estimate of this number they can evaluate for themselves if it is something they can handle. The best way to come up with this estimate is to work with a professional Realtor, like John Robinson, and a mortgage professional. John will help you figure out the taxes, insurance, and homeowners association fees, and your mortgage professional can help put together the mortgage numbers.
Once you have determined your proposed monthly expenses you can begin to pull together your financial documents to support your loan application. When you begin working with your lender they will review your information and be able to give you an idea if you are credit qualified. This means your credit score is acceptable and your income and asset document support enough income for you to mange the mortgage payments for the foreseeable future. If at this time you do not qualify, your mortgage lender will be able to help you identify the issues and help you make a plan to correct them.
In a nutshell, the most important thing for a prospective buyer is to know approximately how much their purchase will cost them. These costs need to be considered from multiple perspectives; funds at closing and monthly ongoing expenses. If the buyer is personally comfortable with these costs, they are most likely in a good position to qualify for a mortgage.