If you’re dreaming of buying a home but know that you are not yet in a position to do so, visiting a lender is probably the farthest thing from your mind.
It’s time to re-think that idea.
It’s a good idea to go ahead and visit your lender even when you think:
- Your credit isn’t so good
- Your income isn’t high enough
- You have too much debt
Because your lender can show you exactly where you stand and help you overcome those issues.
Start with your credit. One of the first things your loan officer will do is look at your credit score, your credit history, your monthly liabilities, your income, and your assets. In other words, they’ll examine your entire financial picture.
If your scores are too low to qualify for a mortgage – or too low to qualify for a good interest rate – they can show you where and how to improve. Your lender knows which debts are causing the biggest drain on your scores. He or she can advise you on which debts to pay off first, and let you know if there’s something there that will force you to wait another year or two.
If your income is a problem, your lender will let you know how much more you need to earn in order to qualify for the home you want. Or – he or she can tell you just how much you can spend per month on a home, and what that translates to in terms of home prices.
If you have too much debt, your loan officer can help you go over your monthly spending habits and find ways to reduce that debt. The fact is, for every dollar of debt you have, you must have two dollars of income to offset it when making a loan application. In addition, if more than 15% of your income is going to consumer debt, you’ll have to bring it down in order to qualify for a mortgage loan.
In other words, it’s worth your while to stop charging and start paying off those bills.
A lender can also advise you on whether or not bringing in a cosigner would be a good idea.
Go ahead and make that appointment with a lender.
Tell him or her up front that you don’t think you’re ready, but you’d like help in getting there. If the lender isn’t willing to talk with you on those terms, find a different one. The truth is, a good lender can be your strongest ally in your quest to own a home.
Here at Homewood Mortgage, the Mike Clover Group, we’re always willing to talk with future home owners, and always willing to give advice and guidance. So please feel free to call.
In fact, why not call right now, before you forget.
Call today: 469.621.8484