A lot of people don't take the time to apply for a home loan because they suspect that they don't make enough money, don't have enough credit, or that they will get denied. If you are bringing in a steady income and you don't live beyond your means, and you are already paying someone else to live in the property that they own, it's time to make a move for your financial future.
It's time to consider getting your own home, so you can start building equity and stop paying someone else each month. Here are some questions to ask yourself that indicate you are ready for a mortgage.
Do You Already Pay Monthly Rent?
If you are already paying monthly rent, and you pay it in full and on time, then this increases your chances of getting a mortgage. The rent that you have to pay each month may even be more than what you will spend monthly on the mortgage.
You want to get a letter of recommendation from your landlord, stating that you have paid on time and in full as long as you have been staying at your current location. If you have other landlords that will report the same thing, ask for more letters. This will be especially important if your landlords don't report your rent to the credit bureaus.
Are Finances Stable?
You want to be able to prove that your income and finances are stable. To help improve the likelihood of getting the loan, and to have what the mortgage lender is looking for, make sure you are ready to provide these things:
- Proof of regular income
- Money in savings
- At least three months of a potential mortgage put away
- No late payments on a credit report
- Low debt-to-income ratio
By showing that you aren't struggling to pay the bills, that you have money put away, and that you would have some backup money if something happened to your income, you are showing you are financially stable.
If you are already using a bank, you may want to talk with them about the home loan options that they offer, but you will also want to explore other possibilities. Different financial institutions will run promotions, benefits and other things for first time home buyers, and other banks may have lower interest rates. Find a professional to help you get started with the home loan process and become a property owner as soon as you can.
Contact a company like Unison Bank today for more information.