With housing prices and mortgage interest rates at record lows, conditions are certainly good for purchasing Virginia Beach VA real estate, and you may be one of the many buyers seriously looking to do so. Before you begin searching in earnest, however, it is important that you begin planning for obtaining a mortgage. Because of heightened and tightened lender requirements, your down payment, credit score, income, monthly expenses, debt-to-income ratio, job stability, and savings will all play a role in your being approved for a Virginia Beach VA real estate mortgage.
To help you prepare, the American Bankers Association offers these tips:
- Obtain a copy of your credit report before loan shopping. Go online for your free credit report from each of the three bureaus and examine it carefully to detect any errors/misinformation.
- Review your finances. Calculate all of your fixed monthly expenses. Include a potential mortgage payment, homeowner’s insurance, taxes, and any HOA fees. Also include obligations such as car payments, credit card debt and living expenses. Add projected home maintenance costs as well.
- Gather all documentation. Lenders will ask for a great deal of documentation regarding your salary, savings, job stability, debts, and the like. You will need to provide pay stubs for the past 30 days; W-2 forms for the past two years; bank, retirement, and investment account statements; and a listing of debts and monthly expenses.If you are self-employed, you will also have to submit two years of tax returns and possibly a profit-loss statement. Click here for a more detailed listing.
- Calculate your debt-to-income ratio. This ratio compares the gross amount of money you earn to the amount you owe to creditors (mortgage payment, car loans, credit card payments, etc.). The lower the number, the better. Lenders generally require scores at or below 36%. To figure your own ratio, use an online calculator.
- Do your homework before buying Virginia Beach VA real estate. Learn mortgage terms and be aware of current interest rates. Check out this free site that updates available interest rates daily and discloses the best “par rate” in your area. In addition, if you provide contact information, the site will forward that information to the local lender offering the best rate.
April Partida is a Professional, Experienced and Results Oriented, Top Virginia Beach VA Realtor committed to meeting your needs.
April has distinguished herself as a leader in the Virginia Beach Virginia real estate market. April assists buyers looking for Virginia Beach VA real estate for sale and aggressively markets Virginia Beach homes for sale. April is also a Short Sales and Foreclosures Resource Specialist (SFR). Avoid foreclosure and short sale expert, committed to helping families in financial hardship find options to foreclosure.
You can reach April at 757-227-1777 or by email, firstname.lastname@example.org. ALL of the information, NONE of the obligation!