Should You Wait to Buy?

We are in the business of financing loans but more importantly, we are in the business of steering borrowers in the right financial direction. Sometimes it is not the best time for a person to make a large home purchase and we think it is unethical to push them in the wrong direction. Here are a few questions to ask yourself before purchasing a home:

• Is your income steady? Have you been on your current job for at least two years? If not, were you previously in a job in the small field? Have you had major gaps in your employment or think you may have upcoming gaps? Major employment gaps that cannot be explained may hinder you in financing.
• Are you sure you will be staying in your current area for a while? This is something to think about to consider if you will need to sell your home in the near future.
• Do you have a stable savings account? Has your money been in your savings account for a while at a steady rate? Will you need to borrow money for a down payment? If so, you must remember that any gift will need to season in your account for at least 6 months.
• Is your credit good? When was the last time you checked your credit? For most loan programs, the lowest you can go is around 640 and even this low of a score comes with other stipulations.
• Did you just finance other major purchases such as automobiles or appliances? These purchases will raise your debt to income ratio, a very important ratio used in calculating your financing.

It is important that borrowers are educated and fully understand the loan process and what each factor means to them in order for them to make the correct decisions. Share this if you agree. Have more questions? Contact us at 704.892.5211