You are facing an extremely exciting time in your life. You are about to buy your first home. Where do you begin? First of all, you should contact a Realtor in your area to begin a home search based on your needs, budget, and criteria. Secondly, you should consider 4 important steps. These are 4 things you should always do when buying a home, especially for the first time. Undergo a Credit Check Your credit score is your key to a good home. Mortgage lending in Catlin, Illinois, depends on a good score. Your credit score will affect what you qualify for and the overall costs of your loan, —essentially because this score tells banks and other lenders how trustworthy you are to make future payments. Find a trusted source to check your credit, then search the report for any errors, omissions, or collections balances. Check Your Budget How do you budget your payments and expenses every month? What assets do you have? What sources of income do you have? What regular payments are you making, such as student loan repayments? Tally these together. If you are a married couple, combine all of these figures to get a tally of the money coming in and going out every month. This will help you figure out how you spend your money, where you can dial back, and, most of all, how much you can spend. This debt-to-income ratio will help you decide what monthly mortgage payments you can afford to make. Collect the Essentials You will need several important documents in order to purchase a home and apply for a mortgage. Essentially, the documents you need revolve around your income and taxes. Lenders usually request your 2 most recent pay stubs or 2 years of income if you are self-employed or work on commission. You will need 2 years of W-2 tax forms, tax returns, and bank statements. For best results, collect every single page of every single document related to the above. It is better to have too much on hand than too little. Trust Your Realtor Your Realtor is your confidante and assistant throughout the entire home-buying process. Feel free to share all of your concerns, doubts, fears, desires, and uncertainties with them—the ones related to buying a home, at least. They understand the business of buying a home and can advise you throughout the process. Mortgage lending in Catlin, Illinois, may seem complex or even confusing, but with a Realtor's advice and the assistance of a lender, you can be on your way to buying your first house before you know it.
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