| Home buying is a big purchase and you will need to make
careful decisions before lashing out on this kind of money.
There’re also a few things you should keep in mind before
you buy a place you can call ‘home’. Avoid other major
purchases. Especially car unless you can pay cash for both
the car and the house. Why? When determining your
qualification for a mortgage, the lender looks at your
‘debt-to-income’ ratio. This ratio is the percentage of your
gross monthly income (before tax) you spend on debt. The
more debt you have, the less you can get on your mortgage if
you’re even qualified.
Don’t move money around. Another thing the lender will be
concerned about is the source of funds for your down payment
and closing costs. You will be asked to provide statements
for the last few months on any of your liquid assets
including checking accounts, saving accounts, stock
statements, mutual funds, etc. If you’ve been moving money
around, there may be large deposits or withdrawals in some
of them. Therefore, the mortgage underwriter will probably
ask for a complete paper trail of all the deposits and
withdrawals and it could get quite tedious. So leave your
money where they are until you get your mortgage and don’t
change banks either.
Check out our
Las Vegas Buyer Agent page.
Article Source:
http://EzineArticles.com/?expert=Oh_Srichaphan |
