[vc_row][vc_column width=”1/1″][vc_single_image image=”4384″][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” type=”full_width” text_align=”left”][vc_column][vc_column_text]What you need to know, and do, before getting your first mortgage.
Buying and financing a home is overwhelming. There’s no way around it. From searching and indecision to paperwork and financial requirements, it’s a process like no other. Fortunately, this process is one of the most fulfilling experiences of your adult life. Not only will you learn a lot about real estate, but you will learn even more about yourself.
Our guide to your first mortgage is here to add some peace of mind to the home buying journey. We believe putting you in your dream home is as much about keeping you financially sound as it is about finding the perfect features. [/vc_column_text][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” type=”full_width” text_align=”left” el_class=”post-cont”][vc_column width=”1/6″][vc_single_image image=”4363″ img_size=”full” alignment=”center” qode_css_animation=””][/vc_column][vc_column width=”5/6″][vc_column_text]Debt Reduction
If possible, pay off as much of your current debt as possible. When determining how much house you can afford, your lender will take a close look at your debt-to-income ratio. If this ratio is too high, it is unlikely you will receive a loan – and if you do, it will come nicely wrapped with a high interest rate.
Paying off this debt will also improve your credit and reduce tons of stress when monthly bill payments come knockin. [/vc_column_text][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” type=”full_width” text_align=”left” el_class=”post-cont”][vc_column width=”1/6″][vc_single_image image=”4364″ img_size=”full” alignment=”center” qode_css_animation=””][/vc_column][vc_column width=”5/6″][vc_column_text]Improve Your Credit
Although acquiring good credit is not the key to building wealth, it is a key factor in putting yourself in your dream home. Without good credit, your mortgage lender will deem you too risky for a quality loan – or loan at all.
To improve your credit score, make your payments on time. Missing student loan payments or waiting for collections to contact you before paying off your credit card will make it nearly impossible to borrow.
It can take years to recover from your debt making its way to collections.[/vc_column_text][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” type=”full_width” text_align=”left” el_class=”post-cont”][vc_column width=”1/6″][vc_single_image image=”4365″ img_size=”full” alignment=”center” qode_css_animation=””][/vc_column][vc_column width=”5/6″][vc_column_text]Refinance Student Loans
For those with significant student loan debt, refinancing your loans through Bank of North Dakota will reduce your interest rates and get you out of debt faster. Avoid stretching your payments out over a longer period of time. Getting your debt paid off as quickly as possible is the best way to build your credit and start building wealth.[/vc_column_text][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” type=”full_width” text_align=”left” el_class=”post-cont”][vc_column width=”1/6″][vc_single_image image=”4373″ img_size=”full” alignment=”center” qode_css_animation=””][/vc_column][vc_column width=”5/6″][vc_column_text]Work History
This is not the time to switch jobs or careers. When applying for a mortgage, lenders want to see a stable income and work history. In the eyes of your lender, an inconsistent work history equals inconsistent everything – especially monthly payments.
We aren’t saying you can’t switch jobs or careers once everything is said and done, but during the buying process, show as strong of a financial foundation as you can. We have seen deals fall through, right before signing, because a buyer changed jobs.[/vc_column_text][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” type=”full_width” text_align=”left” el_class=”post-cont”][vc_column width=”1/6″][vc_single_image image=”4366″ img_size=”full” alignment=”center” qode_css_animation=””][/vc_column][vc_column width=”5/6″][vc_column_text]Get Your Documents In Order
Everything from tax returns and bank statements to brokerage statements and pay stubs, your lender wants as much information as possible. The more the better. Thorough and extensive documentation shows the big picture and shows the lender you are responsible.[/vc_column_text][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” type=”full_width” text_align=”left” el_class=”post-cont”][vc_column width=”1/6″][vc_single_image image=”4367″ img_size=”full” alignment=”center” qode_css_animation=””][/vc_column][vc_column width=”5/6″][vc_column_text]Put Your Credit Cards In The Attic
It may sound bizarre, but during the mortgage process, using your credit card or applying for a credit card can actually destroy a deal. You should be securing as much of your finances as possible. Continuing to acquire debt is deemed irresponsible in the eyes of your lender. Save, save, save.[/vc_column_text][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” type=”full_width” text_align=”left” el_class=”post-cont”][vc_column width=”1/6″][vc_single_image image=”4368″ img_size=”full” alignment=”center” qode_css_animation=””][/vc_column][vc_column width=”5/6″][vc_column_text]Shop Your Options
Each lender is different. When your begin shopping for a mortgage, we recommend seeing at least 3 different brokers. Be weary of lenders who don’t require much information. Although it seems great at the time, you may be getting yourself into a situation you can’t truly afford – they are simply trying to make a sale.
Also, if a lender offers a “no closing costs” loan, they are likely compensating with extra charges somewhere else. Ask them where. [/vc_column_text][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” type=”full_width” text_align=”left” el_class=”post-cont”][vc_column width=”1/6″][vc_single_image image=”4369″ img_size=”full” alignment=”center” qode_css_animation=””][/vc_column][vc_column width=”5/6″][vc_column_text]Pre-Approval
Once you have all your finances and debt in order, get preapproved. Pre-approval provides 3 main advantages to the home buying process:
- Expedites the process – the bank has already agreed to finance your purchase, so it simply becomes a matter of gathering any additional data and having the home appraised.
- Know exactly how much home you can purchase – no waste time looking at homes you can’t afford.
- Less risk for the seller
If you have quality credit, healthy income, and savings in the bank, being approved will be quick and easy. [/vc_column_text][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” type=”full_width” text_align=”left”][vc_column][vc_column_text]At Verity, we are dedicated to your dream. Your dream requires overall well-being. Before sending you off on your home-owning journey, we want to make sure you are doing so with financially responsibility. When it comes to getting the mortgage you deserve, it is important to follow the steps we covered, so you can live peacefully and happily. [/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/1″][vc_column_text]
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