Things to know about your loan…
3 key factors determine how much you can afford:
1. Down payment
2. Your ability to qualify for a loan
3. Closing costs
Down payment requirements vary from purchase to purchase.
Most lenders require that your monthly payment range be between 25-28% of your gross monthly income. The 3 components that determine your ability to secure a home loan include your credit report, assets, income and property value.
You will be required to pay fees for loan processing and other closing costs. These fees must be paid in full at the final settlement, unless you are able to include them in your financing.
Some money do’s and don’t’s during qualifying and escrow.
DO’s
– Stay current on existing accounts
– Continue to use your credit as normal
– Keep records of credit use
– Call your lender with any questions or concerns about your credit
DON’T’s
– Apply for new credit
– Close credit accounts
– Max out credit cards
– Consolidate your debt
– Pay off collections or “charge-offs”
Have other questions? Ask away!