By: Brandon Beatty
Everyone who has purchased a home has had one thing in common: there was always a first time. It was probably a little intimidating, but it doesn’t have to be. Here are some easy tips to make the homebuying process run a bit smoother.
Get everything in order: Even before you start looking for a home, there are ways to prepare:
- Getting your credit score as high as possible is important! There are sites that can not only let you know what your score is, but provide tips and resources on how to raise it.
- While you want your credit score as high as possible, you want your DTI—debt-to-income ratio—as low as possible. This is, simply put, the percentage of your monthly gross income that goes toward paying debts: mortgage or rent payments, credit card payments, auto loans, student loans, things like that. Lenders like to see a DTI of less than 36%.
- Save up! It seems like a simple thing, but it’s super important: the more you save the more you can put down. That said, it’s not necessary to always put 20% down like people might think. There are different loan programs and products that tailor towards putting less than 20% down.
Get pre-qualified from your lender: Do some research, reach out to a lender, and be prepared to discuss:
- Your price range
- What you want to pay each month
- How much of your savings you’re willing to part with
- What city, neighborhood, or area you’re looking to buy in
- An estimated date that you would like to settle by
A pre-qualified letter from a respected originator (like me) and lender (like Envoy) will go a long way in the offer submitting process.
Get your documents in order: When talking to your loan officer, they will inform you about the documents you will need, so have the following items readily on hand in order to expedite the process:
- Two years of tax returns
- Two years of W2s or 1099s from employers
- Two months of bank statement, to show where your down payment will come from
- A month’s worth of paystubs
- And, easiest of all, your driver’s license
Finally, enjoy the shopping process: Whether you’re looking by yourself, with a significant other, or friends and family it is supposed to be exciting. It may seem stressful at times and you will have tons of questions, but that is what we at Envoy are here for. We will be available for you throughout the entire process, and beyond.
This should be more than enough information to get you moving on the homebuying process. But you—like everybody else—will have questions. And that is what the Envoy Mortgage Team is here for. Please reach out to us here for any questions you may have, and happy homebuying!