Steps to Securing a Home Loan
Buying a home feels like one big step with a lot of little steps along the way.
Whether this is your first loan or 50th, we are here to help educate you. Please plan to join us for a 15-minute in-person or phone meeting.
The two most important qualifiers during prequalification are your ratios and your assets.
No more than 30% of your gross income.
Typically 3.5% down payment.
Step One: Pre-qualification
Pre-qualification helps you to know how much of a loan you are qualified to take out and how much your monthly payment will be. It’s important to determine during this step how much you can comfortably pay each month and still have money for other bills, savings, life’s little surprises and a little fun.
To Get Pre-Qualified
You can complete an online application or you can spend about 15 minutes with us on the phone and we will discuss your employment history, income, assets, credit history and monthly obligations (debts). At the Ackerman Group, we hope you will let us walk you through the process on the phone, so we can answer any questions you have and ask any that we have.
Ratios
Typically, you would want your mortgage payment (including insurance, taxes and mortgage insurance) to be no more than 30% of your gross income (before taxes and deductions). You would want your total obligations including car payments, credit card payments, student loans and your mortgage to be no more than 40% of your gross income. These are what we refer to as your ratios. The first is your “housing ratio” and the second, and more important number, is your “Debt-to-Income” ratio (DTI).
Assets
Typically, you will need at least 3.5% down payment to get a mortgage -- the minimum for FHA loans. Conventional loans require at least 5% down payment. There are down payment assistance programs that can help you with the required down payment. Also, you can typically receive a gift from a family member for the down payment.
Shop For Your Dream Home
After you are pre-qualified you can begin the real house hunting. We recommend that you use a Realtor as they are trained to help you through ever step, something a website is not. As a home buyer you will not be charged the Realtor’s commission; that is paid by the seller. A Realtor is a win-win for a home buyer. We are happy to refer you to a Realtor who specializes in the neighborhoods you are looking and who will know how to work with you best.