If you’re buying a home for the first time, congratulations! You’re about to embark on an amazing journey. With William Ryan Homes, it’s a fun and simple process where we work with you every step of the way to make sure you’re confident taking the huge step from renter to owner. Before you begin your new home search with William Ryan Homes, here are some tips to help you financially prepare, some things to consider, and our special partner lender.
The three credit bureaus (Equifax, Experian, and TransUnion) are each required to give you a free credit report once a year. An FTC study found one in four Americans identified errors on their credit report, and 5% had errors that could lead to higher rates on loans. Avoid last-minute surprises by checking your score long before you make an offer. And work diligently to correct any mistakes.
Lenders are happy to lend you as much as your debt load allows, typically no more than 43% of your gross monthly income (called the debt-to-income ratio). This figure includes your future mortgage and any other debts, such as a car loan, student loan, or credit cards. There are online calculators to help you determine what you can afford.
Most conventional mortgages require a 20% down payment. If you’re not able to swing that, there are programs that can help. The FHA (Federal Housing Administration) offers loans with lower down payments, but they require mortgage insurance premiums, which drive up monthly payments. The U.S. Department of Housing and Urban Development (HUD) offers a variety of programs by state, as do some credit unions. When planning your savings strategy, remember that banks like to see that you’ve had stable funds in your account for 60 to 90 days before applying for a loan.
Buying a home may have miscellaneous upfront costs – home inspection, title search, property survey, or home insurance. Costs vary by region but can run a few hundred dollars.
Banks are very particular about giving out mortgages. They require a lot of paperwork, including:
● 2 to 3 years of tax forms (W-2s or self-employed forms)
● 2 to 3 years of personal & business (if applicable) tax returns
● Most recent pay stubs
● Credit card and all loan statements
● Bank statements
● 5 to 7 years of past addresses
● Brokerage account statements for the most recent 2 to 4 months
● Most recent retirement account statements, such as your 401(k)
Choosing the right lender can make all the difference when financing your home. Along with the trusted lender, Mutual of Omaha Mortgage, we formed Home Loan Express Mortgage (HLX Mortgage) to provide you with competitive rates and a range of home mortgage solutions. Together, we’ll make the process easy!
1. Pre-Approval.
We’ll help you figure out your buying power and can offer an interest rate lock through your build time.
2. Application Process.
We’ll make sure that all your I’s are dotted and T’s are crossed.
3. Home Close.
William Ryan Homes and HLX are with you every step of the building and closing process for a smooth home-buying experience.
William Ryan Homes is here for you throughout your new home search. We have a wide selection of homes in various markets including Texas, Florida, Illinois, Wisconsin, and Arizona. Browse through the communities in the area you’d like to live in and when you’re ready contact us!
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