So, you are considering purchasing your first home in Ocala? Congrats on taking the first step, home buying is definitely a big achievement and deserves a celebration.
But hold tight... Before you start attending open houses in Ocala and searching real-estate listings online, you need to know a few important things. If you are not a cash-buyer and require mortgage financing, you must make sure that you qualify for a mortgage and find the best deal in the market. Taking out new home loan is probably going to be the biggest financial commitment you are likely to make, therefore, you need to make sure that you fulfill this commitment successfully.
Here are some great tips to help you buy your first piece of real estate and qualify for a mortgage.
1. Review Your Credit Reports
Your creditworthiness is directly proportional to your mortgage qualification and terms. No, this is not a scientific formula but it can truly increase or lower your chances of qualifying for mortgage on the terms you want. So, first things first, obtain your credit reports from all three credit bureaus and analyze them carefully. This will help you determine what your monthly expenditures are and what you can afford. A credit score of 620 is the minimum you need to apply for most home loans today ( USDA, FHA, VA, Conventional loans) and begin your property search. However, a score of lower than 620 can cause trouble, as you might get mortgage at a higher rate, if you even qualify at all! But don’t worry; you can give your credit score a boost by closing down derogatory credit card accounts and paying your bills on time. If you have good standing credit cards, with lower balances, be sure to keep those accounts open.
2. Figure Out Your Housing Budget
Before you apply for a mortgage, work out your budget. Here, you will have to be sure that you can borrow enough to cover the property purchase and still have enough money to cover all the associated fees and costs - mortgage payment, electric bill, cable TV, phone, etc. This will help you understand what you can and cannot afford. Remember, buying a home on mortgage that you can’t afford will do you no good. Your inability to make mortgage payments timely will only damage your creditworthiness and eventually, in a year or two, you will end up putting your home for sale.
3. Stay With The Employer
Before approving your request, most lenders want to see you have been with the same employer for a decent length of time, generally a few years in the same line of work. Switching employers is ok, as long as you remained in the same line of work and don't have any extended gaps in employment without explanation. Whatever you do, be sure to stick with you same employer after you get pre approved. Also be sure to tell your lender/bank about any wage increase or decrease that happens after pre approval.
4. Get Your Proof of Income
You will need paystubs, tax returns, W2's from your employer to provide it to the mortgage company. This form provides a snapshot of your pay and tax deductions. It serves as a proof and gives lender the confidence that you will be able to keep up with payment and meet the debt to income ratio requirements.
5. Talk About Mortgage Financing Options
What home loan option is best for you? 100% USDA Rural Home Loan, FHA 3.5% down program, VA mortgage, Conventional home loan? Marion County - Ocala has some great programs available to first time home owners. Our loan specialists will carefully review your situation and needs and recommend the best program.
Follow these tips to increase your chances of qualifying for mortgage and realizing your home ownership dreams at a faster pace. New home buyers in Ocala can contact us 7 days a week to discuss details on getting pre approved.
Advice for First Time Buyers - Ocala, Marion County First Time Buyer program. To learn more please visit www.UsdaMortgageSource.com or call ph: 904-302-6060
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