Navigating a competitive housing market demands strategic preparation. The key to gaining an edge over the competition lies in early and thorough preparation for the home-buying journey.
Here are essential steps you can take to enhance your prospects in the housing market:
Obtain your credit reports from major bureaus such as Experian, Equifax, and TransUnion. A favorable credit score significantly increases your likelihood of approval, offering you access to better interest rates and more favorable loan terms.
Understand that lenders generally prefer a DTI ratio ranging from 36% to 43%. Calculating your DTI gives you insights into your financial health and helps you align with lenders' expectations, increasing your chances of securing a mortgage.
Many mortgage programs require a minimum down payment of 3% to 5%. However, VA and USDA loans offer the advantage of requiring 0% down. Saving for a down payment is a crucial step in preparing for homeownership and meeting the requirements of various loan programs.
Utilize our online mortgage calculator to estimate the amount of home you can afford based on your financial situation. This tool empowers you to set realistic budget constraints and align your expectations with your financial capacity. Additionally, consider pre-qualifying to gain a clearer understanding of your approval chances and refine your home-buying strategy.
By diligently following these steps, you position yourself ahead of the competition in a hot housing market. Early preparation not only enhances your eligibility for favorable loan terms but also ensures that you approach the home-buying process with confidence and a well-defined financial plan.
Interest Rates Have Increased
Borrowers May Not Qualify
Due to DTI Calculation
Time To Consider
NO RATIO PROGRAM
No DTI calculation
No Income on Application
No Employment on Application
No Tax Returns
No W2s
No 1099
Only Required to Have
as low as 20% Down Payment
80% LTV = 720+ FICO - 12 Months Reserves
75% LTV = 680-719 FICO - 9 Months Reserves
65% LTV = 660-679 FICO - 9 Months Reserves
Funds for Down Payment
Closing Costs
Prepaid’s
Reserves
Primary Residence
Second Home
Purchase
Refinance
Minimum Loan $200,000