Preparing your Finances to Buy a Home!

by Danielle Witte

1. Know your Credit History - No matter what your situation is, you need to check your credit history and know your credit before buying a home. It doesn't matter how good or bad you are with money; all that matters is what's on your credit history. If you find something incorrect in your credit history, resolve it before buying a house.

2. Calculate your Debt-To-Income - Your debt-to-income ratio is one of the main criteria a mortgage lender will consider when determining your loan pre-approval. This number is found by comparing your average monthly debt (bills, taxes, etc.) to your average monthly income. Often, mortgage lenders don't want a higher ratio than 43% debt-to-income.

3. Gather your Financial Documents - When you apply for a mortgage, the loan officer will ask you for the previous year's tax returns, employment verification forms, and the last month's bank statements.

4. Choose A Lender - There are many loan officers to choose from, just as there are multiple loan types. Be sure to take your time and find the one that works best for you. You'll be communicating with them often. Don't have a lender? We can help you find one!

5. Complete Your Loan Pre-Approval! Contact The Next Door Team for a personalized real estate experience.

Dana Johnson - Colorado Realtor Your South Denver Real Estate Expert

Danielle Witte - Colorado Realtor, Certified Luxury Home Marketing Specialist

Your Westminster Real Estate Expert with over 13 years of Experience

The Next Door Team