5 Tips to Prepare Your Finances for the Home Buying Process
The fall season is here, and typically this time of year is when people start to look into their home buying options. Some buyers may already be looking at homes, and may already be making plans for their future humble abode. One thing each buyer must realize though, is that there's more to purchasing a home at the Lake of the Ozarks than finding a house you love and signing on the dotted line. In fact, there are several things you can do to plan ahead to ensure you're financially prepared to buy. Check out these 5 tips to prepare your finances for the home buying process:
1. Evaluate Your Budget
You should develop a written budget with your income and expenses and write down your debts and your assets. Think about what you spend now on housing costs and what you would be comfortable spending monthly on your next place. Estimate your available funds for a deposit, a down payment and closing costs and identify sources for funds.
2. Check Your Credit
You are entitled to a free credit report from each bureau once a year. You may also want to sign up for a Credit Karma account to keep a closer eye on your credit. Look for errors that need correcting and check for negative items that could pull your score down. Borrowers with a credit score of 740 or higher will pay lower mortgage rates than someone with a lower score. Request your credit reports from all three credit-reporting bureaus at www.annualcreditreport.com.
3. Get Documents in Order
You'll need to gather up any required documents for your loan application. You will need the most recent pay stubs and bank statements for your final loan approval. We at Mortgage Headquarters will provide you with a list of required documents you'll need for the application and loan process.
4. Call Mortgage Headquarters to Get Pre-Approved
This is going to be crucial for your home search and should be done prior to shopping homes. This provides you with a more accurate idea of what you will be able to afford and will prove to be a valuable tool when it comes to making offers. Mortgage Headquarters can talk to you about various financing options and which suit your short- and long-term goals as well as your financial profile.
5. Be Careful with Your Spending
While it is tempting to open an account at a home improvement store or buy a new car to go with your new place, keep in mind that any change in your financial circumstances could possibly even disqualify you for the mortgage. Lenders are required to recheck your credit just before the closing and need to see your creditworthiness is the same (or better) than when you were pre-approved for a loan.
Your Mortgage Finance Professionals at the Lake of the Ozarks
If you're in need of a mortgage for a new home, need to find out about your refinancing options, or have any other questions pertaining to mortgage lending, trust in the mortgage professionals at MHQ - Mortgage HeadQuarters to have your best interest in mind. We've got more than 20 years experience in the mortgage lending business and we can help you choose a mortgage program that's right for you and your specific needs!
Mortgage Headquarters of Missouri, Inc
4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065
Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917
NMLS # 1229111
1. Evaluate Your Budget
You should develop a written budget with your income and expenses and write down your debts and your assets. Think about what you spend now on housing costs and what you would be comfortable spending monthly on your next place. Estimate your available funds for a deposit, a down payment and closing costs and identify sources for funds.
2. Check Your Credit
You are entitled to a free credit report from each bureau once a year. You may also want to sign up for a Credit Karma account to keep a closer eye on your credit. Look for errors that need correcting and check for negative items that could pull your score down. Borrowers with a credit score of 740 or higher will pay lower mortgage rates than someone with a lower score. Request your credit reports from all three credit-reporting bureaus at www.annualcreditreport.com.
3. Get Documents in Order
You'll need to gather up any required documents for your loan application. You will need the most recent pay stubs and bank statements for your final loan approval. We at Mortgage Headquarters will provide you with a list of required documents you'll need for the application and loan process.
4. Call Mortgage Headquarters to Get Pre-Approved
This is going to be crucial for your home search and should be done prior to shopping homes. This provides you with a more accurate idea of what you will be able to afford and will prove to be a valuable tool when it comes to making offers. Mortgage Headquarters can talk to you about various financing options and which suit your short- and long-term goals as well as your financial profile.
5. Be Careful with Your Spending
While it is tempting to open an account at a home improvement store or buy a new car to go with your new place, keep in mind that any change in your financial circumstances could possibly even disqualify you for the mortgage. Lenders are required to recheck your credit just before the closing and need to see your creditworthiness is the same (or better) than when you were pre-approved for a loan.
If you're in need of a mortgage for a new home, need to find out about your refinancing options, or have any other questions pertaining to mortgage lending, trust in the mortgage professionals at MHQ - Mortgage HeadQuarters to have your best interest in mind. We've got more than 20 years experience in the mortgage lending business and we can help you choose a mortgage program that's right for you and your specific needs!
4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065
Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917
NMLS # 1229111
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