I would be glad to pass their names on to you if that would be helpful for you.
with the Blaser Yoakum Team
Your mortgage consultant will then notify you as to what specific mortgage programs fit your particular situation, need/wants and what price range would be comfortable for you. At that point I believe you have a great starting point as to how much money you would need for down payment, closing and other contigencies such as home inspections, termite and closing cost.
Once you receive your prequalification documents, then you can sit down and figure out your the specifics of the home you would like.
First, sit down and look at your finances. How much do you bring in? How much currently flows out?
Banks won't want you to commit to spending more than about 40-43% total on all your debts. So, if you have a car, a student loan, and credit cards, take the total and whatever is left over out of 40% of your gross income is available for housing.
Let's say you make $28/hour and you have a $300 car payment, a $100 student loan payment and $75 a month to pay minimums on your credit cards. The $28/hr equates to $4,667 a month gross income. The bank won't like you to spend more than around $2,000 a month for all debt. So, the $475 a month for other debts leaves you with $1,525 a month you can spend on housing.
At today's 5% mortgage interest rate this calculates out to about a $280k mortgage but you need to reduce that for taxes and insurance. The bank wants you to pay each month about 1/12 of your annual property taxes and insurance. A good rule of thumb is to take the sale price and multiply by 0.75% or to multiply your monthly available income times 130. For $1,525 x 130 you should be able to get about $203k. A $200k sale price x 0.75% is $1,522. (Yes, tax rates and insurance will vary - so this is just a rule of thumb.)
Second, see how much you have for down payment and closing costs. You'll need a minimum of 3-1/2% of the sale price for FHA-guaranteed loans or about 5% for conventional loans - in cash in the bank. And you'll need another 2-4% for closing costs. Some of that can be paid by the seller or can come from somewhere else. On $200k, you'll need $7,000 in the bank (3.5%). Plus, you'll need some money for closing costs, say, $4-6,000, but some of that could be paid by the seller or a gift.
Lastly, not necessarily using these numbers but rather your own budget, ask a loan officer if you qualify for a home priced around $200,000 (or whatever your budget shows). Not only will he confirm your numbers from your budget, but he will also check your credit scores and history to see if anything will prevent you from getting the loan. You might have some unexpected things to take care of, like old bills you didn't know about. And your score might be lower than expected because of the surprises, which means it will take a few weeks or months to clear up the credit issues.
If you have some serious derogatory information, like foreclosure, bankruptcy and so on, you may wind up in the penalty box for a couple of years. Just keep pluggin' away at paying your bills on time, and the score will come up. Time cures all wounds.
One of the best things you can do is get with a lender and a good agent that can help assist you in the entire home buying process. You can read books, talk to friends, but you actually need to sit down with someone who works in the market day after day.
We have a team of 4 full time agents and a marketing person and an administrator. We work hard to help you find a great property within you budget.
So to truly answer your question, call David with Prospect Mortgage at 817.328.1307--office number and get the processs started.
Also to get great buyer service call Rick, he is a great buyer's agent that will work hard to find you just the right house. Rick's cell is 817.455.8304
Pam with the BlaserYoakum Team
Thad depends on the type of program you want or need. I would get with a local lender or mortgage broker who will work with you and give you the information you need. You also need to know where your credit stands as that will have the biggest effect on qualification. You can also get an idea of what you qualify for. In your case you do want a minimum of 5% saved and although not always required you want to have at least 60 days reserves after your purchase closes.
Please note that just because you can qualify for X amount does not mean you should buy in that range. It is no fun being house poor. So take the time to set up your team and start with a trusted lender. From there you can get the information you need to ensure a smooth transaction with no surprises.
Good luck on your home purchase.
REALTOR | Mortgage Broker | Consultant
Keller Williams Realty | 360 Lending Group
I would be happy to do a no obligation consulation with you either in person or over the phone. Please contact me if you would like to look into this further.
Integrity First Home Loans
1221 W Campbell Rd, Suite 115
Richardson, TX 75080
NMLS License #209438
Please see my blog for more tips and advice when getting a mortgage
A minimum of 5% of the amount you're wanting to spend is best. Obviously the more the better. But you could achieve the goal of a home purchase with that.
While looking at homes, you could/should continue to save more money too.
You should get with a good Lender to determine the amount that you can and want to spend.
Best of luck!
You are on the right track. Good luck.