Quiz time!
the best way to know how much home you can buy is
A) Go to Zillow and put the numbers into their calculator
B) Ask your friends and family what their payment is.
C) Find the house and hope you'll qualify
D) Meet with a lender and find out what the cost involved are and what the full payment will be, including principle, interest, taxes and insurance, You may need to add in HOA fees and possible leasing fees like a solar lease.
✅ What People Need to Know Before Getting a Home Loan
1. Credit Score & History
Lenders check credit to see how responsibly you manage debt.
Higher scores = better interest rates.
Review your credit report for errors before applying.
2. Income & Employment
Stable, verifiable income is crucial (usually 2 years of consistent work history).
Pay stubs, W-2s, and tax returns are often required.
3. Debt-to-Income Ratio (DTI)
Lenders compare your monthly debts (car, credit cards, loans) to your income.
Aim for under 43% (lower is better).
4. Down Payment
Traditional loans often want 20%, but many programs allow 3–5%.
FHA, VA, and USDA loans may offer low or even zero down payment options.
5. Loan Types
Conventional: Flexible, but credit and down payment requirements are stricter.
FHA: Easier qualifications, lower down payment.
VA: For veterans, with no down payment.
USDA: Rural areas, no down payment.
6. Closing Costs
Typically 2–5% of the purchase price.
Can sometimes be negotiated with sellers or covered by lender credits.
7. Pre-Approval vs. Pre-Qualification
Pre-Qualification: A quick estimate based on self-reported info.
Pre-Approval: Verified with documents, shows sellers you’re serious.
8. Documentation You’ll Need
Pay stubs, W-2s, tax returns.
Bank statements.
ID and proof of funds for down payment.
9. Interest Rates & Loan Terms
Rates fluctuate daily—locking in at the right time matters.
Consider fixed vs. adjustable rate loans depending on long-term plans.
10. Extra Considerations
Save an emergency cushion (don’t drain everything into the down payment).
Don’t open new credit cards, make big purchases, or change jobs before closing.
Back to the quiz, obviously the answer is D. Get in touch with me and I'll introduce you to lenders that are committed to finding you the best path to homeownership.
Sellers, looking for a unique marketing plan? I market your home like no one else will. Buyers, I offer Mom-approved customer service. Agents, I am a referral resource you can trust. Call me, and we can talk. I serve the Victor Valley of CA and the Hill Country area deep in the heart of Texas.
I'm Karen Sanchez, REALTOR.
"Marketing your house like no one else will." 760-684-0250
Licensed in two states: CA and TX.
Working in the Victor Valley and South Bay area, with some other SoCal areas by request, and the Hill Country of Texas.
Legal stuff to follow.
Karen L. Sanchez Broker, Reputable Realty License #01804752 Email: karen@karensoldit.net
Berkshire Hathaway HomeServices Don Johnson Realtors, New Braunfels, TX Cell: 760-684-0250 Office: 830-624-8272
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