Colorado Springs Real Estate recently published an excellent article on how to buy a house, step by step. Over the next few months we?ll break down that article into some easy tips to help guide you through the home-buying process. Today?s topic will be finances.
- Know your credit history. No matter your financial situation, you?ll need to check your credit history and know your credit status before buying a home. If you find something on your credit report that is incorrect, be sure to resolve it before entering the home-buying process.
- Calculate your debt. Your debt-to-income ratio is one of the main criteria for obtaining a mortgage. Carefully calculate your expenses and debts to help determine a desired monthly mortgage payment. A mortgage lender or experienced Realtor can offer assistance.
- Gather financial documents. When applying for a mortgage, you?ll be asked to provide tax returns, employment verification, bank statements and more. Gather this information before looking at homes.
- Find a mortgage lender. More importantly, find a loan officer and company that you are comfortable working with. Be sure to ask about closing costs, interest rates, speed of closing, etc.
- Get pre-approved for a loan. A pre-approval letter from your lender will make you a legitimate buyer when you?re out looking at homes. And, a full mortgage pre-approval will help guarantee that your financing doesn?t fall apart at any point during the home buying process.