Getting Approved

The path to getting approved for your home loan can be a smooth one. With the information provided in the Getting Approved section, you’ll learn the Things to Consider Before Buying a Home, the Do’s and Don’ts of the Mortgage Process, and the Documents Needed for Loan Applications. Other necessary things to keep in mind include What to Expect at Closing, How Your Credit Score is Derived and How to Keep Your Credit Clean. All of the answers you need are just a few clicks away.

In the same way, I’m just a phone call or email away. If you don’t immediately find the information you need or would just prefer a person personally explaining it to you, contact me. I’ll be glad to answer whatever questions you have!

Things to Consider Before Buying a Home

For many people, buying a home is the single biggest investment they will make in a lifetime.

The so-called "right time" is different for everyone. Before making a decision to buy a home, ask your PrimeLending Loan Officer to help you answer the following questions.

Can You Qualify for a Mortgage?

The best way to determine this is to figure out your debt-to-income ratio. As an example, if a loan program uses a 28/36 qualifying ratio, it means the homebuyer is allowed to spend no more than 28% of his or her gross income on monthly mortgage payments and no more than 36% on total debt. Total debt includes car and school loans, credit cards, child support and alimony. More specifically, if an individual earns $60,000 per year, his or her monthly gross income is $5,000. Under the 28/36 guidelines, that person's maximum monthly mortgage payment should not exceed $1,400 while his or her total monthly debt should not exceed $1,800.

How Much Home Can You Afford?

Commonly paid in cash, down payments are based on a percentage of the home's selling price and are due at closing. If you are able to make a down payment of 20% or more, you can save money -- between $20 to more than $100 a month -- and avoid the cost of mortgage insurance. If you don't have 20% to put down on a home, remember that there are other options out there. Many affordable mortgage programs exist, including a few that require little or no down payment. Additionally, zero down payment programs are available for some veterans, active-duty military personnel and reservists.

How's Your Credit?

All lenders require a credit report that contains personal financial information such as loan payment information, bank and credit card accounts, and more. You are able to obtain a copy of yours by contacting any one of the credit bureaus throughout the United States.

Whether you are purchasing your first home or you've purchased several through the years, it's helpful to stay current on the latest and most recent updates to the home buying process. The Cavanaugh Team has compiled this home buying guide to provide you vital information you need to know for one of the largest financial investments you can make.