VIDEO #1 of 4: Credit
Questions to ask yourself:
- Have I been on-time with my car loan payments, my credit card payments and other payments that would affect my credit score?
- Are my credit card balances 50% of their limits or are most of my cards maxed out?
- Have I been applying for other loans and credit cards recently?
- Do I meet the minimum credit scores mentioned in this video to buy a home?
VIDEO #2 of 4: How Much House Can I Afford?
- Am I financially stable?
- Do I understand that a mortgage payment includes principal, interest, taxes, insurance and in some cases, mortgage insurance.
- Do I understand if I put less than 20% down that I may be required to pay mortgage insurance?
- What is the 43% rule? Do I meet the minimum debt to income ratio?
- How much of a payment can I afford?
VIDEO #3 of 4: Employment
- Have I been in the same line of work for the last 2 years?
- Am I prepared to verify my current and past 2 years of income?
- Have I had any long-term gaps in my employment in the last 2 years?
- If I earn a commission or bonus on top of my hourly pay or salary, has it been consistent for the last 2 years?
VIDEO #4 of 4: Down Payment
What amount will I be able to have for a down payment?
- 0-3.5% of purchase price
- 3.5% - 5% of purchase price
- 5% - 10% of purchase price
- 10% - 20% of purchase price
- More than 20% of purchase