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Three Things You Need to Know About Pre-Approval

If you’ve made the decision to begin searching for your dream home, you need to be sure that you have a few important details taken care of. One of the first steps involved is to obtain a letter of pre-approval for a mortgage. Having a pre-approval letter from a lender, shows sellers that you are serious about purchasing a home and it shows how much home you can afford.

Check Your Credit

Before contacting a lender, you will need to get at least one copy of your credit report to make sure everything is correct. If there are any discrepancies in your credit history, do your best to identify and resolve those. Lenders will go over every detail of your credit history to determine if you are worth the risk. A credit score of 620 is recommended to qualify for a mortgage, but a higher score is always better and may qualify you for better interest rates.

Determine Your Debt-to-Income Ratio

Your debt-to-income ratio, also known as DTI, compares how much you owe each month in expenses, to how much you earn. This includes student loans, credit card payments, and car loans. Typically, lenders prefer a buyer with a DTI of 45% or less. If your DTI is much higher, you may want to consider paying down your outstanding debt before buying a home.

Gather Your Paperwork

Once you are ready to contact a lender for your pre-approval, you may need to provide proof of income, financial accounts, and other personal information.

Some of the necessary paperwork will include your Social Security number, employment verification such as pay stubs, W2s, and bank account information. Many lenders prefer that you have at least two years of continuous employment but be sure to confirm this with your lender.

Being pre-approved for a mortgage may give you an advantage over other potential buyers because it shows the seller that you have the financial stability to secure a loan.

Should you have additional questions or are ready to begin the pre-approval process, please reach out to me using the contact information below.

Six Reasons Why A Reverse Mortgage May Be Right For You

A reverse mortgage allows age 62 (in some cases 55) and older senior homeowners with considerable equity to borrow against the value of their home and receive funds as a lump sum, fixed monthly payment or a line of credit, while still living in the home.

Included below are a few additional details about reverse mortgages. If you have any questions or would like more information, I am ready to assist you.

• Allows accessible money for home maintenance and home improvements.

• Allows the borrower to have no mortgage payments.

• Allows the borrower to have a Home Equity Line of Credit they can draw on for emergencies, vacations, etc.

• Allows the borrower to receive a monthly payment from the reverse mortgage if they choose to.

• Allows you to maintain ownership of your home, provided terms of the loan are complied with and your property taxes and homeowners’ insurance are paid as required.

• Allows you to postpone using other sources of retirement income.

Contact Kathleen Beck Today

Phone 916-722-0395

Text 916-284-6844

Kathleen.Beck@Doorway.com