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Education

4 Must Haves For A Home Loan

When you are ready to apply for your first home loan the lender will need to have 4 things in line for you to be approved. Two of the items you’ll need to provide and the other two the lender will help you with.


1. Credit Score – The lender will “pull” your credit score and determine if you have a high enough score to move onto the next stage.

2. Income Verification – The lender will collect your pay stubs and tax returns to determine if you can prove you make enough money.

3. Debt-To-Income Ratio – The lender will look at how much money you make versus how much money you are obligated to spend every month, i.e. car payments, credit cards, student loans, etc.

4. Down Payment – The lender will look at the amount of your down payment and see which loan program will work best for you. Generally speaking the more downpayment you have the easier it is to qualify.

These are the 4 basic components of qualifying for a loan and there are many different loan programs out there. When talking with a lender though be aware of these 4 items and you’ll be ahead of the game. There’s a lot to learn and the right lender will do a very good job of breaking down the complexities of home loans so that even a first time home owner will understand easily what they are working towards.


As always, there is a win-win for you out there it just takes asking the right questions and finding the right people to help you.

To your success!

Reach out to Brett if you have any questions, 801-623-9552

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Education

Avoidable Mistakes First Time Home Buyers Make

So you’ve decided to buy your first home! Congratulations, homeownership is one of those really great dreams to realize. The process is fun and exciting but it can also be daunting and a little overwhelming. There’s lots of information to understand and sometimes in a very short time frame. Keep in mind these rookie mistakes that some buyers have previously made:

  1. Not knowing how much home they could qualify for before looking for a house. The difference between what a payment is and what you actually qualify for can really throw a wrench in the process. You could fall in love with a house, make an offer and find out after you’ve had your offer accepted that you won’t qualify for the home. A good lender can tell you in a 5-10 minute phone call how much you can qualify for and saves a ton of frustration before you even get started.
  2. Applying for a different type of credit before the house loan closed. Often times people get excited for the home purchase that they go out and get a furniture loan to start sprucing up the place. What they don’t know is that type of loan can easily disqualify you for the home loan. Even worse some people choose to upgrade their car as well and that loan will also disqualify you for the home.
  3. Miscalculating improvement or renovation costs. Buyers fall in love with homes and even get a “good deal” but end up not knowing the real costs of the improvements they want to make. They end up with not enough money to make the improvements or potentially even worse they upgrade the home too much and can never recoup the renovation costs.

Knowing how to avoid these pitfalls can make the first time home buying process not only more fun but also more rewarding both in the short term and the long term. Have fun out there but be aware of these pitfalls to make sure you win in the end.

Download our First Time Home Buyer Guide.