| People usually become very overwhelmed even | | | | last 2 years, social security number, bank statements, |
| thinking about getting a mortgage. Well there's a few | | | | how much cash you have in the bank and much more. |
| simple steps to remember when applying for a | | | | They're going to pull your credit score and check your |
| mortgage. You wont be an expert after reading this, | | | | debt to income ratio to see how much buying power |
| but you'll know what to do and maybe even research | | | | you have. From there they will tell you how much you |
| more to gain the knowledge you need to apply for a | | | | can afford. |
| mortgage loan. | | | | Those numbers are easy to figure out though |
| First, you should use a mortgage calculator to | | | | because you know how much you can afford and the |
| determine how much of a monthly payment it is for | | | | banks calculation is very accurate. So you should have |
| the type of home you're looking for. Maybe it's in the | | | | a good idea of how much more per month you can |
| 150,000 range or the 300,000 range. The best number | | | | afford. Let's say its 1500 per month. Remember that |
| to start with is your down payment. You want to | | | | it's not just the monthly mortgage payment, but also |
| avoid PMI, and in order to do that you must put down | | | | the monthly taxes and the condo fee if there is one. |
| 20%. So if you have 30,000 to put down then you | | | | You don't have to add in the home expenses though, |
| should probably look in the 150,000 range. The banks | | | | the bank will take care of that when the are figuring |
| are being very careful in this tough economy so | | | | out your borrowing power based on your income. |
| without a down payment, it will be very difficult to get | | | | I linked all of the key terms to my website for you to |
| a mortgage. | | | | look at if you're not sure what they are. There's a lot |
| Once you figured out your monthly payment amount | | | | more information there about buying a home and tips |
| you can go to the bank with better figures in mind so | | | | of how to deal with the bank and get the best current |
| that you're not oblivious when they start throwing | | | | interest rates for your situation. |
| numbers at you. They will ask you your income for the | | | | |