With housing prices and mortgage interest rates at record lows, conditions are certainly good for purchasing Greenville NC real estate, and you may be one of the many buyers seriously looking to do so. Before you begin searching in earnest, however, it is important that you begin planning for obtaining a mortgage. Because of heightened and tightened lender requirements, your down payment, credit score, income, monthly expenses, debt-to-income ratio, job stability, and savings will all play a role in your being approved for a Greenville NC real estate mortgage.
To help you prepare, the American Bankers Association offers these tips:
- Obtain a copy of your credit report before loan shopping. Go online for your free credit report from each of the three bureaus and examine it carefully to detect any errors/misinformation.
- Review your finances. Calculate all of your fixed monthly expenses. Include a potential mortgage payment, homeowner’s insurance, taxes, and any HOA fees. Also include obligations such as car payments, credit card debt and living expenses. Add projected home maintenance costs as well.
- Gather all documentation. Lenders will ask for a great deal of documentation regarding your salary, savings, job stability, debts, and the like. You will need to provide pay stubs for the past 30 days; W-2 forms for the past two years; bank, retirement, and investment account statements; and a listing of debts and monthly expenses. If you are self-employed, you will also have to submit two years of tax returns and possibly a profit-loss statement. Click here for a more detailed listing.
- Calculate your debt-to-income ratio. This ratio compares the gross amount of money you earn to the amount you owe to creditors (mortgage payment, car loans, credit card payments, etc.). The lower the number, the better. Lenders generally require scores at or below 36%. To figure your own ratio, use an online calculator.
- Do your homework before buying Greenville NC real estate. Learn mortgage terms and be aware of current interest rates. Check out this free site that updates available interest rates daily and discloses the best “par rate” in your area. In addition, if you provide contact information, the site will forward that information to the local lender offering the best rate.
Whether you are considering buying a home, selling a home or both, Liz Freeman knows the Greenville, North Carolina area inside and out. Most of her team members were born and raised in Pitt County, NC which has provided them with strong ties to the area, allowing them to become a successful Greenville NC real estate team.
Liz Freeman and her team have distinguished themselves as leaders in the Greenville NC real estate market. Liz assists buyers looking for Greenville NC real estate for sale and aggressively markets Greenville NC homes for sale. Liz is also a Certified Distressed Property Expert (CDPE), avoid foreclosure and short sale expert, committed to helping families in financial hardship find options to foreclosure. For more information you can visit Liz Helps.com. You can reach Liz by filling out her online contact form or give her a call.