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Home Buying Services-FREE Reports
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Congratulations! You have decided to purchase a home, or are thinking about buying one. You'll be joining the ranks of hundreds of families who realize that home ownership offers a number of benefits including building equity, saving for the future, and creating an environment for your family. When you own your own home, your hard-earned dollars contribute to your mortgage. The equity you earn is yours. Over time, many homes will increase in value.
In the following free reports, you'll find the information you need to make a wise buying decision. We'll take you through the planning process step-by-step , to help you determine which home is right for you. You'll find a host of informative articles on mortgages, viewing homes, the offer, closing details, moving and other very informative reports. Please call 682-551-7653 or email me if you have any questions about buying a home in the Dallas-Fort Worth and surrounding areas. Remember that Buyer Representation is no charge to you as the seller pays for my services at the closing of the sale. You need an experienced Realtor© working with you to help you through the complicated process of buying a home.
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Steps Towards Your New Home
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It can take weeks to get a mortgage if you visit several lenders and mortgage brokers.
I can help you get qualified through
NEW CENTURY FUNDING, LTD
before you start to look for a home, and you'll trim your search time.
Most home purchase failures are due to the loan process. |
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To streamline the process and improve your chances: |
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- Order a copy of your credit report.
Your lender will also order a copy, but you should see it first. That way, you can clear up any credit problems before you submit your loan application. Order copies of your credit report from one of the three national credit bureaus:
1. Experian (formerly TRW), (800) 392-1122
2. Equifax, (800) 685-1111
3. Trans Union Corporation, (800) 888-4213
- Organize your recent tax returns and
financial documents.
The lender will need your financial information to determine how much you can borrow. If you don't have all the paperwork, you can get copies by contacting your tax-preparer and other people who deal with your personal finances.
- Get contact information from your human
resources department.
Find out who is authorized to release information about your employment status. Provide the correct contact name and telephone number to the lender to avoid loan-processing delays. | |
Understanding how much you can afford is one of the most important rules of home buying. Depending on your individual situation, your budget can affect everything from the neighborhoods where you look, to the size of the house, and even what type of financing you choose.
Keep in mind, however, that lenders will look at more than just your income to determine the size of the loan. Likewise, you may find that there are some creative financing options that can help boost your purchasing power.
Loan Pre-Qualification vs. Pre-Approval
One of the best ways to determine your budget is to have your real estate agent or lender pre-qualify you for a loan. Pre-qualification is different from pre-approval, because it is only an estimate of what you'll be able to afford. On the other hand, pre-approval is a more formal process where a lender examines your finances and agrees in advance to loan you money up to a specified amount.
What Factors Are Important To Lenders?
Banks and lending institutions will use several criteria to determine how much money they'll agree to lend. These include:
 Your gross monthly income |
 Your credit history |
 The amount of your outstanding debts |
 Your savings |
 Your choice of mortgage (i.e. 30-year, FHA, etc.) |
 Current interest rates |
Two important ratios Lenders also use your financial information to figure out two, very important ratios: the debt-to-income ratio and the housing expense ratio.
| Debt-to-income ratio Many lenders use a rule of thumb that the amount of debt you are paying on each month (car payment, student loan, credit card, etc,) shouldn't exceed more than 36 percent of your gross monthly income. FHA loans are slightly more lenient. |
| Housing expense ratio It is generally difficult to obtain a loan if the mortgage payment will be more than 28 to 33 percent of your gross monthly income. |
Down Payments Make A Difference
If you can make a large down payment, lenders may be more lenient with their qualifying ratios. For example, a person with a 20 percent down payment may be qualified with the 33 percent housing expense ratio, while someone with a 5 percent down payment is held to the stricter 28 percent ratio.
Other Ways To Improve Your Purchasing Power
| Gifts |
| If you're having trouble saving money, many lenders will allow you to use gift funds for the down payment and closing costs. However, most lenders require a "gift letter" stating the gift doesn't have to be repaid, and will also require you to pay at least a portion of the down payment with your own cash. |
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| Negotiating Closing Costs Through Negotiation |
| Some sellers may agree to pay all or most of your closing costs (for example, if you agree to meet their full asking price). If you choose to try this, make sure to consult me for advice. |
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| Loan Programs |
| Many local governments have special loan programs designed to help first-time homebuyers. Loans may be available at reduced interest rates, or with little or no down payments. Check with your local housing authority for more information. |
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| Loan Types |
| Some homebuyers choose Adjustable Rate Mortgages (ARMs) because of low initial interest rates. Others opt for 30-year loans because they have lower monthly payments than 15-year loans. There are significant differences between different loans, so make sure to discuss the pros and cons of different loans with your lender before making a decision. | |
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