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Financing Guide

Make your dream a reality by buying the home you’ve always wanted. Don’t let financial requirements overwhelm you. Here’s how you can get started.

  1. Get your finances in order
    If you want to buy a home, make sure you have money in the bank and that you have as little debt as possible. Getting into good financial shape will give you a high credit rating, making it easier for you to secure financing. See to it that you have enough to cover everything, including closing costs, inspections, appraisals, surveys, insurance, and taxes.
  2. Get a credit report
    If your finances aren’t even close to where you need them to be, getting an annual credit report will give you a better idea of what the problem could be. To get your credit report processed, feel free to check our page.
  3. Develop healthy credit habits
    Pay off as much debt as possible to gear up for your home purchase. Consider consolidating or refinancing student loans if you have any. Try to lower payments, even if it means stretching the loan out for a few more years. Pay all your bills and loans on time.

    Moreover, avoid buying anything on credit while your loan for a home is pending. While it might be tempting to use it for home furnishings or related expenses, it can potentially ruin the deal.

  4. Play up an impressive work history
    If you’ve been constantly employed, you might want to emphasize this part of your background. You’ll be more likely to get a mortgage if you’ve been steadily employed for two years. Taking on a part-time job to pay off debt or add to your savings would also be helpful, even if the lender doesn’t consider it a viable source of income.
  5. Meet with several mortgage officers
    Shop around for mortgage officers because not all of them offer the same amounts. As if can get lower interest rates if you pay more upfront. If there are no closing costs involved, find out if there are hidden costs or if they’ll be charging you elsewhere to compensate.
  6. Gather documents
    Prepare bank statements, brokerage returns, tax returns, and other documents needed to verify the source of the money you intend to use. You must also provide documents to verify your employment, income, and financial capacity. You must also leave a paper trail – for instance, if your parents agree to help you, ask them to write you a letter stating that they gave you a cash gift to cover part of the down payment.
  7. Talk to closing agents
    Closing costs, which include legal fees, document preparation, and title insurance, may vary and cost thousands. You can save money depending on the closing agent you choose. Ask your mortgage officer or your agent for referrals.
  8. Look for a home that meets specific standards
    Whether you’re getting an FHA loan or a conventional loan, the home of your choice must qualify by meeting certain standards and conditions. The house must also be insurable. This increases the chances of you securing financing.

With these tips in mind, securing financing should begin to feel more doable.

Let Hunter Real Estate Group help you start a new life in Houston. For more information on financing, feel free to call 713-572-0824 or use a loan payment calculator.