If you are planning to pounce on the spring real estate market in Vermont and New Hampshire you want to be completely prepared. Many buyers find a home they love and then come to us to find out if they prequalify for a mortgage. Doing things in this order is dangerous for two reasons:
- You may find out you don’t qualify for as much as you thought or you may be uncomfortable with the payments for the home you’ve chosen. If you already have your heart set on the home you saw, this can lead to major disappointment.
- Another buyer who took the time to prequalify for a mortgage in advance may jump in and put an offer in before you have a chance.
In fact, if you are considering shopping for a home during the 2014 spring real estate market, start the mortgage loan process now! This may seem early but this gives you a chance to talk about mortgage payment amounts and think about your budget to determine the best price point for you.
During the mortgage loan process you will need to gather all of the required documentation including tax returns, bank statements, pay stubs and payment details for any other assets you owe money on such as a vehicle or student loan. You don’t want to be scrambling around for this information after you’ve found the home of your dreams.
The spring real estate market can be very desirable for buyers because inventory is typically very high. Sellers will wait to put their home on the market during the spring in order to grab the attention of as many potential buyers as possible. As a buyer this means that you will want to be prepared and serious about finding a home.
Things to Avoid Until Spring
While you wait for the spring real estate market to heat up there are a few life changes your lender will tell you to avoid:
- Avoid changing jobs – Lenders like to see job stability. A quick change in your employment circumstances can change your loan qualification.
- Don’t make a big purchase – This means no new vehicles and no big purchases on credit cards that can’t be paid off in the next billing cycle. Taking on new debt will change your debt-to-income ratio.
- Stick with your bank – If you’re getting ready to buy a home, then it’s not time to change banks. Lenders want to see banking history.
- Avoid late payments – You should always avoid late payments but be even more careful when applying for a mortgage.
- Don’t co-sign a loan – You might think you’re doing a good deed by helping someone co-sign for a loan but the truth is, you’re increasing your debt-to-income ratio.
If your spring break plans involve house hunting contact Title Mortgage to prequalify for a mortgage today! You can fill out the mortgage application online or make an appointment and we will sit down with you and discuss your loan options and explain the mortgage loan process.