Adventures in Househunting -Getting Pre-Qualified
I just got off the phone with my lender. I am officially pre-qualified (and at $25,000 more than I wanted!). It is always a good idea to get pre-qualified before you start seriously shopping for a home. You want to make sure you can afford the monthly payments and that your credit is in good shape. Also, you don’t want to have unrealistic expectations about what you can afford
As a rule of thumb, you need a credit score of at least 620, but don’t hesitate to call if yours is lower. A lot of mortgage lenders can guide you on ways to clean up your credit. And with interest rates so low right now, it is a great time to quit paying rent & get some of those amazing tax credits!
A few items your lender will request, so make sure you are very up front and honest with them:
- 1 month of work stubs
- 2 months of bank statements
- The last 2 years of W2s
It would be terrible to think you are qualified for an amount, then be surprised at the last minute and not able to close on your home.
Another thing that I did was sit down with my monthly budget. I accounted for everything we spend money on, and figured how much I could pay monthly and still maintain the lifestyle we now live. Even though we qualify for more, I don’t want to end up house-poor. Good luck!
Have a question about buying your first home? Or a topic you would like discussed? Email me at adventuresinhomebuying@mriwebsites.com. If you have any advice for this first time homebuyer, feel free to leave it in the comments section.
