Keys to Financing Your New Home
As a first time home buyer, whether in Lexington, Arlington or any surrounding areas, you have a lot on your hands and a lot of questions. How much house can I afford? Where do I want to buy? Which mortgage product is best for me? It can be a very over whelming process, especially in today’s real estate and credit environment. But, like any major life decision, it can become much less intimidating by some simple preparation and understanding of the process. I have provided an outline for you below that will help you navigate through your first time mortgage approval.
You may want to watch this informative video about how we make getting your loan easier. https://www.wellsfargo.com/mortgage/learning/mortgage-process-video If you are ready to start the pre-approval process, contact me through my secure web site http://michaeltanionos.com
Preparation is the key to success!
- Have your credit checked by a reputable mortgage LENDER (IE: Wells Fargo) before you start house shopping.
- Collect all financial and employment records from the previous two years (see list, attached)
- Be confident your career/income source is in a secure, stable place
- If buying jointly with a partner or spouse, BE A TEAM!
Disclose all debt, career plans, family choices and long term plans before starting the process of buying a house together
What do banks look for in me as a buyer? - “The Big Four”
- Credit Score- Biggest determining factor of your interest rate
- Debt to Income Ratio- Typical Max out at 45%
- Down Payment- Will determine which program you need most like Conventional vs FHA
- Reserves- Showing at least 2 months of mortgage payments in post closing reserves can help you chances of mortgage approval.
What is FHA financing and why is it important to me as a First Time Home buyer?
FHA is a government backed product that is the most popular program for First Timers today. It offers flexible credit score and lower down payment requirements. Here are some of its highlights:
- Low 620 minimum credit score.
- Non-traditional credit is acceptable.
- Low 3.5% downpayment- can be gift from family members
- Non-occupant, co-borrower is permitted.
- Expanded qualifying ratios.
- No prepayment penalties.
- Fully assumable.
- Default assistance.
- Non-credit qualifying, streamline refinances.
Availability: in all areas of the country, provided a market exists for the property and the home meets HUD's minimum property standards.
Versatility: may be used to purchase or refinance a new or existing one- to four-family home in urban and rural areas, including manufactured homes on permanent foundations.
Need more information?
Not sure what program is best for you? Feel free to contact me at anytime via cell, email or through my secure web site to start the pre approval process at http://michaeltanionos.com.
Michael John Tanionos
Home Mortgage Consultant
Wells Fargo Home Mortgage
186 Cambridge Road
Woburn, MA 01801
NMLSR ID 408614