Applying For A Mortgage
- What’s your annual income? Be sure to include any money earned from bonuses and investments as well.
- What is your credit score? Before applying for a mortgage, it’s important to have an idea of what your score is. Not only is it imperative to know your score, but really take a look at your credit report to make sure there are no errors present. If an error is found, contact the credit agency about removing the mistake. Getting a copy of your credit report should be free; everyone can get a free copy of their report every year.
- What assets do you have? Lenders will want proof of all assets including vehicles, income properties, etc. Also, be prepared to explain any large withdrawals or deposits to your accounts.
- How much debt do you have? A large part of the loan approval process is knowing what your debt-to-income ratio is. Add up credit card balances, loan payments, and other monthly payments to determine what your amount of debt is.
- How much money can you put down?
- How much home can you comfortably afford? In general, it is recommended that your housing expenses (mortgage payment, insurance, taxes, HOA, etc.) not exceed 28% of your gross income (income before taxes).