1. Figure out how much house you can afford
The rule of thumb here is to keep your housing expenses listed above at less than 30% of your annual gross income.
2. Understand potential home buying costs
Your down payment may vary based on the loan you chose, but this number usually comes in at around 20% of the purchase price. Closing costs vary depending on what state your home is in, your loan type, and your mortgage lender, but all will be included on your loan estimate and closing disclosure.
3. Grab your pre-approval documents
To get ahead of the game, gather your documents and get pre approved today!
You will need:
- Pay stubs from the last 3 years
- 2-3 years of tax returns
- Rental payment history
- Written proof of borrowed money from family or friends
- Run your credit report and fix if needed
- Social security card
- Drivers license
4. Get the best mortgage rate for you!
Meet with one of our amazing lenders to discuss different loan options such as:
- USDA loan
- FHA loan
- VA loan
- Fixed rate
You’re also going to want to consider how long you want your mortgage to be. A 15-year mortgage will allow you to be debt-free sooner and in turn lowers the interest you will have to pay. Choosing a 30-year mortgage will lower your monthly payments.
It can be overwhelming buying a home for the first time, but we’re happy to walk you through the process from start to finish. Reach out today to start your home buying journey!
This weekly Sponsored Column is written by Fountain Mortgage. Located in Prairie Village, Fountain Mortgage is dedicated to educating, and thus empowering, clients to make the best financial decision possible for their situation. Contact Fountain today.
Fountain Mortgage NMLS: 1138268