Home Financing - The Basics
What can you afford?
When deciding to finance a home, it is of the greatest importance that you figure out exactly how much you can actually afford. When you meet with a loan officer from a bank for the first time, he or she will calculate what you can afford based on several criteria. In the end, he or she will tell you exactly what price you can look at paying.
If you honestly cannot afford a house at this point in time, it is better to save your money until the time is right. You would not want to risk going into a great deal of uncontrolled debt, just so you can say you are a homeowner.
What to expect when meeting with a loan officer:
During your visit with this loan officer, you will most likely need to show him or her your two-to-five year financial history. This history should include your income, assets, and credit. Your income is defined as the gross monthly income you earn, as well as income from extra jobs, dividends, bonuses, and child support. You will also need to show the loan officer your credentials. These include your employment and educational history. Your current employer may even need to provide your loan officer with a letter of recommendation or W-2 forms.
When meeting with the loan officer, you must also be prepared to discuss your assets. These assets are monies that are in your checking accounts, savings accounts, stocks, bonds, certificates of deposit, pensions, and insurance policies.
The loan officer will also look at your credit history, including all of the outstanding debts you may have as well as any car or bank loans you have. A credit report will almost always be done to provide the loan officer with a history of your debt payments. If you find any discrepancies in your credit report, it is highly important that you address them right away. Understand that your credit score is just about the most important factor that will be looked at when you are waiting to hear if you got the loan or not. By looking at your credit score, lenders will be able to determine how responsible you are for making payments on your debts. Lenders want to see that you will be able to pay a monthly mortgage as well as pay on all of your current debts, and still have money to put in the bank each and every month.
Understand the terms of your loan:
Nothing could be worse than not being prepared to pay for your loan. Typically, this does not happen, as loan officers ensure that you know what you are getting into. But, it is definitely in your best interest to learn all that you can about the loan you are signing up for. If you have any questions whatsoever – ask, ask, ask!
Related Tags: real estate, real estate investing, real estate law, real estate financing
Golf Articles at http://eGolf-Today.com. Learn how to operate a Successful Adsense Website Network at http://eWebCreator.com. Matthew Hick has been designing profitable Niche Adsense Websites for over 5 years.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- The Beginning of the Cataloging Code
The first significant cataloging code was published in 1841. The realization that cooperation and s - In the Lap of the Gods 24
Life moved on. Lily became well liked by both students and staff because of her cheerful outlook on - In the Lap of the Gods 23
Does fate decide the future? Is it all mapped out for us, predestined, or can we influence what com - Write Your Memoir: How to Write About What Troubles You the Most
Everyone has a story to tell, and unfortunately those stories aren't always pleasant. What makes me - How Crafty Word Order Can Instantly Improve Your Writing
by Philip Yaffe I am usually very reticent about offering writing tips. Unless they are linked to - You Say Grandpa, I Say Deda
I was born with two grandmothers but only one grandfather. In nature's rules of familial supply and - My Russian American Dichotomy
I was a Russian girl and an American teenager. I had no choice about the first but I tried very har - In the Lap of the Gods 22
This is just an explanation for those who have read some of the other Chapters of, "In the Lap of t - Write a Book: 8 Reasons You Should Do it
Studies have shown that 82% of people want to write a book, but few of these actually ever achieve - Book Review: the Book of Common Prayer
Book Review: The Book of Common Prayer, "My carry-with-me copy is this size, and I recommend it for
Most viewed articles in this category:
- Real Estate Investment - Investing In Commercial Properties
As in any other type of investment, its obviously advisable to do your research well so that the pro - Taking Care Of Acne Prone Skin With Proper Skin Care Products
Although acne has been largely associated with teeners and puberty, the condition is not only confin - Do I Really Need Eight Hours Of Sleep Each Night?
What if you were told that there is no definitive answer for why we need to sleep? Your initial reac - How to Improve Your FICO Credit Score
If you didn't know this already, having a good credit score is more important than having a lot of c - 10 Tips for a Magnificent Memory
"Where did I leave my keys?" "What did I come in here for?" "Your glasses are on top of your head!" - Things You Might Like To Know About Card Companies
If you have a regular income and are 18 or over then you may be able to get a credit card. You will - Bad Breath in Babies and Toddlers
If your baby or toddler has had bad breath lately, not to worry. There are plenty of things you can - Starving College Students No More
The majority of today's college students are extremely Internet savvy. In fact, many of those studen - Cosmetic Surgery Financing: How Can You Get It?
Cosmetic surgery, a branch of plastic surgery, can be quite expensive, especially if you are plannin - Article Marketing, Improve Your Ranking With Links
Article Marketing, without a doubt remains the best free formula for attracting website traffic. At
