Buying a house for the first time can be a bit scary, or a lot scary depending on your credit history. It’s hard to find information about what you need to do and have to buy a house. Renting and buying are two totally different things. The world of buying can be a bit confusing. This article will explain everything simply for you so you do not have to fret any longer.
Qualifying for buying a house has many different factors. The first of which is your income. Are you getting paid by salary, tips or commission mostly? According to Document Assurance Services, this plays a part in the process because salary versus commission, salary wins due to the fact that the commission can change from year to year. They want to be sure that you can pay for it no matter what your “tips” were that year. They also take into account your expenses as well. How much of your monthly payment is being spent on things besides the house. Do you have a car lease to pay for, Children tuitions? All of these come into play. It is good to show them your tax returns for the previous year or you’re W-2, as they will want to know your income and expenses.
The second part that comes into play when you are trying to buy a house is your employment history. Having a couple of years in the same job or same line of work is a very big plus when buying a house. You want to have a steady income. You need to show the sellers that you do too. Having a great credit score will also benefit you in buying a house. It will help them to predict how likely it is you will have payments when they are due.
Another critical factor in buying a home is the down payment. According to Document Assurance Services, you want to show them that you are serious about this home. Most times you will be required to pay 20% of the mortgage as a down payment. Depending on what kind of “help” you get, it could be as low as 3.5%, but this is if you go through a FHA lender. You will also need to have mortgage insurance and home insurance; while this is not always required it is very important once you are settled down living in the home. Buying a home is scary, but with a little research it can be a little less scary.