Are You Ready to Buy a Home?

For most people in the United States, your home is where your greatest amount of wealth comes from. The question is, how do you know when you are ready to buy? The answer to this can truly range depending on the individual, location, loan, etc. but this post is written to help you answer that question as best you can.

The best thing you can do for yourself is talk to a lender. Getting in contact with a lender is the best way for you get a better idea of where you stand currently, if you are qualified or not qualified, and if you aren’t qualified yet, what you can do to become qualified within the future. Your lender should help you understand what you will be able to afford and what a monthly payment could look like for you. With rental rates rising, most of the time, your mortgage can actually be cheaper than the average rents around Spokane. Along with figuring out your monthly payments, the lender can also help you know how much of a money you will need for the down payment and closing costs based on specific loans. Overall, meeting with a lender is a great place to start your home journey, no matter what stage you are in.

Consider these before meeting with a lender:

-Stable employment history

-Credit history and credit scores

-Monthly income and expenses

-Your debt-to-income ratio

What you will likely need to meet with your lender:

-Last 2 years W2’s

-Last 30 days paystubs

-Last 2 months bank statements

-Copy of ID’s

-Last two month’s mortgage statements (if currently owning)

-Copy of homeowners association

Until you close on a mortgage loan, DO NOT…

-Change jobs, become self employed, or quit a job

-Buy a car, truck, boat, or RV if you are financing

-Use a credit card excessively or miss payments

-Pay off any credit cards or other revolving debts

-Spend money set aside for closing costs

-Withhold debts or liabilities from your own loan application

-Open new credit accounts to buy anything

-Make any inquiries into your credit

-Make large withdrawals or deposits to your bank accounts

-Change banking accounts

-Co-sign loans for anyone

This is just a rough guide on what to expect when you start your home journey, for further information reach out to your preferred lender–if you don’t have one, let us know and we can connect you to our preferred lending partner!