First Time Home Buyers Tips in Sayville, NY - The Mortgage Outlet
You have finally decided to go for it. Buying a home can be exciting and nerve-wracking at the same time, especially for you first-time home buyers. It is difficult to known exactly what is needed as there is so much information and dis-information on the Internet. The Learning curve can be steep, but many of the potential issues can be resolved by doing a little financial homework prior to your search.
Take these steps to help make the home buying and home loan process go more smoothly.
Check you credit
Your Credit score is one of the most important factors when it comes to qualify for a loan these days. The middle credit score will determine what type of loan program you qualify for and what costs might be associated with your home loan.
To get a good sense of where you credit stands go to Annual Credit Report and get it free with no obligations.
Search you report for mistakes, unpaid accounts and/or collections accounts. You should do this six months prior to shopping for a new home as it takes time to have your credit repaired and your scores increased.
Just because you pay everything on time does not mean you will have excellent credit. The amount of credit you are using relative to your available credit limit, or your credit utilization ratio, can drop your scores drastically. The lower your utilization ratio is the better the credit score. Shoot for a balance no higher then 30% of your revolvoing credit limit to reach these goals.
Evaluate your assets and liabilities
Now lets look at what is owed and what is coming in. So you do not owe to much and your payments are on time and current, but the big question is how do you spend your money? Do you have piles of money left over every single month or are you or are you on a tight budget?
All home buyers should have a good idea of what is owed and what is coming in. It is wise to understand your monthly cash flow so you do not have issues after closing.
If I was a first time home buyer and i wanted to make sure there would be no issues i would track my cash flow for a couple of months.
Iif you are self employed or a straight commissions sales person you will need a solid 2 year work history to create an effectiver cash flow projection.
Organize you documents
When applying for a mortgage you will need the following items:
Mortgage Lenders will require the most recent 2 pay stubs, the previous 2 years w-2's, tax returns and the past 2, months bank statements - all pages even the blank ones.
The mortgage process and buying a home can take some time but those that are organized will reduce the time to get you cleared to close
Qualifying yourself
As a First-Time home buyer in Sayville, NY it is important to see how much you can actually afford before you start looking at homes. Use The Mortgage Outlet's "what size loan can i quaify for" calculator can help you.
By calculating your debt-to-income ratio and determining in your down payment, you will have a good idea of what you can afford monthly.
There is no set fixed debt-to-income ratio that lenders require, it is based on the banks ability to accept risk the old standards where based on no more 28% of your income be devoted to your housing payment. This percentage is called the front-end ratio.
The back-end ration takes into consideration all monthly debts that you have. Again every lender is different based on their acceptance of risk. Qualified mortgages can not exceed a back end ratio of 43%.
You can take the time to call each lender and interview the Bank loan officer as to what there debt-to -income ratios or let a Mortgage Broker like THE MORTGAGE OUTLET do the shopping for you. We already have relationships with lenders and understand what their risk ratios are for first time home buyers.
Figure Out Your Down-payment
In Sayville, NY it takes alot of effort to scrape together the down paymentdue to our high cost of living. Certain loan programs do not require any of the down payment to be yours with other do require this. The Licensed Loan Officers at The Mortgage Outlet can help you determine what program best fits you.
Each loan program has the availability of seller concession to help assit you in covering some if not all of your costs. These seller concession start at 3% and can go as high as 6% of the sales price of the home.
Finally, speak with mortgage lenders and THE MORTGAGE OUTLET when you start your process. Check out the lenders loan officers to see what sort of testimonials they might have from satisfied past clients. Use the Internet to your benefit and really check them out, those loan officers without testimonials stay away from. Should you want to speak with one of the Licensed Loan Offices at the Mortgage Outlet you can by clicking here or giving us a call at 631 589 3600.
Happy House Hunting
Other Resources
Short Video for First Time Home Buyers
Short Video on Low Down or No Down Mortgages
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