Homeownership 101

Posted: June, 27, 2014 | Categories: Finance

So, you are ready to buy a beautiful new home. The stars have aligned, the housing market feels right and you've found the home of your dreams.

Are you sure you're prepared for this big purchase? You may have thought about everything from paint charts to where you'll place your piano, but have you   given serious consideration to your finances?

When it comes to buying a home, having your money matters in order is perhaps the most essential key to opening the door to new beginnings. Here a few tips to consider:

  • Lenders are looking for a reliable, continuous source of income to make the monthly payments. Other sources of income can be included ---such as alimony, child support, or veteran's benefits --- provided they can be verified, are reliable and likely to continue for at least three years.
  • As for credit, the first order of business is to pay down your bills. Lenders love to see a clean slate, whenever possible. Additionally, resist the urge to splurge, especially on big ticket items that can wait.
  • Remember it's important to make all payments on time. Equally important is to keep your credit card balances low and avoid closing any accounts during the escrow period.
  • Most financial experts advise prospective buyers to save up funds for a down payment. At McCaffrey Home Mortgage we offer several fixed rate loan programs with low, or even no, down payment.
  • You may want to start gathering all of your financial documents so that they can be easily produced to lenders when requested. These documents can include bank statements, pay stubs, tax returns and even your driver's license.

Finally, consider getting pre-approved with McCaffrey Home Mortgage before you begin your search for the ideal home. It will give you a better idea of your buying power and help you find the right loan that best fits your budget and dreams.

Follow these simple tips and within a few short weeks, you can cross the threshold into a new home, a new life and a new you!