Buying the home of your dreams can be an exciting yet challenging time, between finding the right home to securing a home loan. We suggest you search and compare loans before looking for a home. This allows you to secure the best rates, and you’ll know how much home you can afford. Generally, you should be able to afford a home that costs about 2½ times your gross annual salary. We also recommend getting pre-approved for a loan. The pre-approval will show the seller that you are a serious buyer and may make your offer more attractive — especially if there are multiple offers. After you have been pre-approved for the loan, then we suggest you visit your preferred neighborhood at various times during the day and night to gain a sense of homeownership in the area, before you make an offer on a home.
In addition to good credit, we recommend you put your best foot forward and sell yourself to the lenders. Include all of the details the lenders may be looking for, such as complete tax returns, a personal financial statement, and additional income. Additional income may include: retirement/social security award letters, interest distributions, K-1 distributions, and/or income properties.
• Visit your preferred neighborhood at various times during the day and night to gain a sense of homeownership in the area.
• Learn your debt-to-income ratio - ideally it should be around 40% of your gross income.
• Learn how much you can afford with our Mortgage Calculator.