Thinking about purchasing a home? Before you contact a realtor or make a mortgage inquiry, take some time to review your financial situation. The news is flooded with stories of folks who were not prepared for a change in their monthly mortgage payment or were faced with a job loss. I've been asked about the long-term effects of foreclosure and how it impacts finances and the value of homes in a neighborhood. I've addressed some of these concerns via Quicken Loans' Watch-It Wednesday video series, but I'm also offering some advice below which can help you avoid becoming part of the statistics making headline news.
Don't Put Off Your Portfolio Evaluation
The more information you know about your finances, the more knowledgeable you will be not only about your ability to gain a mortgage approval, but also about the areas of your portfolio that are doing well versus those that need some work. Have you had steady income and consistent employment for at least two years? Do you have a credit score above 620? If not, what items on your credit profile need to be addressed? Do you have an established retirement fund or a healthy savings account should a rainy day turn into a rainy 6 months? Imagine a checklist of income, assets, credit and debt and rank them in order of strength. Your goal is to have all of those factors strong to increase your chances of approval by painting a portrait of fiscal responsibility for your lender.
Work With a Home Buying Expert
Having a reputable lender will make the mortgage process easier and transparent by digging deep to see if you are financially prepared to take on a home loan. Whether you are looking for an FHA Loan, VA Loan or simply want a pre-approval before you shop, contact a home loan expert at Quicken Loans who can help you start the path to homeownership.
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