Home buying can be stressful. It’s already hard enough to find the perfect house. When you add the mortgage loan process on top of that, it can be overwhelming. But it doesn’t have to be.
We’re breaking down eight of the most important steps of home buying and giving you an easier way to complete them. Whether you’re shopping for your first home or your fifth, this info will help.
Step 1: Understand Your Credit Score
Having good credit is extremely important because your credit score helps determine your rate. Here are a couple resources to help you understand and improve your score:
FICO® Score Breakdown: Understanding Your Credit
7 Ways to Improve Your Credit Score
Step 2: Setting a Budget
One rule of thumb is that your debt-to-income ratio should not exceed 43%. To calculate this, add your monthly debt payments and divide the total by your gross monthly income (before taxes and deductions).
For example, if each month you would pay $1,200 for a mortgage, $250 for a car, $300 for student loans, and $100 for credit card debt, your monthly debt payments would total $1,850. If your gross monthly income is $5,000, your debt-to-income is 37% ($1,850 is 37% of $5,000).
Step 3: Getting Pre-Qualified
Pre-qualifying for your mortgage loan is a must. It gives the realtor an idea of what homes you can afford, and it gives you an advantage when it comes to making an offer on a home (Step 5). To get pre-qualified at Connexus, all you have to do is call our team at 800.845.5025.
Step 4: Finding Your Dream Home
We’d love to help you pick out houses, but we can’t. Look at local listings, go online, and talk to your realtor to find the right home for you.
Step 5: Making an Offer
This is a step you have to be ready for. It can be intimidating to decide how much you should bid, but this article written by Realtor.com will help you out.
Step 6: Securing Your Loan
This is where you decide what kind of mortgage is right for you. There are fixed rates, adjustable rates, and several term options. Don’t worry, our Mortgage Team will help figure out what’s best for you. Meet the Connexus Mortgage Loan Officers.
Step 7: Getting an Inspection
You want to have a professional perform the inspection. This is normally part of a contingency on your offer to purchase a property. We have a few quick tips for this step:
- Research the inspector.
- Attend the inspection.
- Read the inspection report.
- Adjust your offer if major issues are found.
Step 8: Closing the Deal
When the papers are signed and the deal is done, you have a new home. Congrats!
The mortgage maze can be stressful, but it doesn’t have to be. Our team is made up of friendly professionals that will be with you every step of the way.