So you’re about to buy a new home…Wahoo!
And you also want to make sure you’re getting a good deal (who doesn’t right?!)
You’re in the right place because we’ve got some great tips to share with you so you can save money when buying a house.
1. Your Current Income and Supporting Documentation
The first item that your potential lender is going to look at is what you are earning. The income is what you’re going to use to pay the monthly loan repayments in case you are approved for the loan. The lender also wants you to provide the most recent paystubs and might proceed to check the details provided with your employer.
2. Current Debts
Once the lender has verified your current income, the next thing they want to look at is the debt to income ratio. Therefore, provide the details of institutions you owe money, and declare the amount owed to them. In addition, you will be required to verify the recurring bills, which include credit card debts each month, and student loans. Lenders will sum up the bills and compare the figure to your current monthly income, plus the projected monthly mortgage repayments. This should not exceed 43% of the gross monthly income.
3. Your Credit History
Consider your credit score before you begin seeking financing for the Saint George Utah property for sale. To qualify for financing, it is helpful that you have a stable credit score. Your credit score is an indication of what your repayment performance is likely to be like in the future.
4. Your Savings
One of the qualifications for a home mortgage is showing your ability to repay by providing a down payment. Therefore, you need to declare your current savings and the savings account for the lender to verify. Generally, for many loans, the down payment is calculated as 3% to 20% of the total purchase price.
Therefore, if you have a stable income, paid all your debts and have a good credit score, the mortgages pre approval officer may give you a positive prequalification report.
What is the importance of home mortgage prequalification?
When you have already prequalified for a home loan and have your prequalification letter ready before house hunting, you are showing St. George realtors or builders you know what you can afford. Additionally, it shows them your buying power when finding the right home. Therefore, it’s advantageous for you to obtain a prequalification letter. Remember, this is not a guarantee your loan will be approved. The mortgage prequalification is not a signed mortgage offer but just a prequalification based on the information that you have provided. If the lender approves the prequalification, you can start finding a property for sale in St George Utah.
For a fast pre qualification experience, have the documentation ready, and work with a reputable lender. At MySalisbury.com, we will guide you through the loan prequalification process helping you through each stage, to ensure you are prequalified. Our approved mortgage lenders provide competitive interest rates, letting the borrower save on the home purchasing process. In addition, we organize a discounted closing cost, for the St George home builders who prefer working with our verified mortgage lenders.