What Is The First Step To Buying A Home?
Buying a home can be stressful and overwhelming, but knowing where to start can make all the difference on your homeownership journey. Are you asking yourself, “ What is the first step to buying a home”? Unless you are buying a home with all cash, getting pre-approved by a lender will give you an official verdict on your home buying budget; this is step number one. To get pre-approved, a lender will calculate your debt-to-income ratio and assess your overall financial health by reviewing the following:
- Income statements, like W2s, 1099s, rental income, and tax returns.
- Assets, like bank statements and retirement accounts.
- Debts, including monthly expenses like student loans, credit cards, and other expenses.
- Records of bankruptcies and foreclosures.
- Current rent, child support payments, alimony payments, and any down payment gifts.
When you are pre-approved, you will receive a pre-approval letter. Not only does it officially let you know how much you can borrow, but it can come in handy when submitting an offer, especially in today’s competitive market. If you don’t have a pre-approval letter, you can miss out on landing your dream home. A pre-approval letter shows a seller that you are serious about buying their home and that you have the ability to do so.
Keep in mind that your debt-to-income ratio will be examined again before closing. Taking on new debt can limit the total loan amount available to you during the financing. If you are ready to get pre-approved or just want to know more about your options, schedule a free consultation with one of our team members. We can help you in your journey. Schedule an appointment here.
Premier Mortgage Resources, LLC | NMLS #1169 | Equal Housing Lender. Not an offer to extend credit or commit to lend. California Licensed by the Department of Financial Protection and Innovation, under the California Residential Mortgage Lending Act.