Things You Should do Before You Apply

for a Mortgage

Know What You Can Afford

This can be hard, especially when you have a variable income, but always better to err on the conservative side. Nobody needs the stress of scrounging for a payment. A basic rule of thumb is to look for houses 2.5 times more than your annual income. Ideally, your mortgage payment should be under 28% of your monthly income. There are plenty of mortgage calculators out there to help you crunch the numbers.

Gather the Documents

This is a tedious but important step. Gather a couple years worth of tax returns, print out your checking and savings statements, pay stubs and proof of employment history (like W-2s) and any other investment paper work. You need to prove that you’re reliable and can handle the financial burden.

Know Your Credit Score

Do you know your credit score? Those three numbers make a big impact on how lenders view you. Knowing your current credit score ensures they’ll be no surprises and you can deal with any unsightly marks that may have been in error.

Get Rid of Debt and Save

Now that you know your credit score, why not pay off some debt? Have a car that’s almost owned, finish off those payments. Don’t make any large purchase on credit near the time of or during the home search and purchase, it will hurt you. SAVE! A 20% down payment is the standard and comes with the extra benefit of not needing to purchase mortgage insurance. (Yes, there is in fact insurance for everything!)

Get Educated

Check with Guild Mortgage. They want to make the home buying process easier for new home buyers. Guild Mortgage is one of the top 10 independent mortgage lenders in the nation, with knowledgeable residential loan officers in your community. Guild offers deep expertise and personalized service for new home purchases and refinancing to every kind of borrower. Whether you are a first-time home-buyer, upgrading, downsizing, or investing in residential real estate, we have the loan to fit your life. Give them a call and ask about any of the following loan products or give us a call and we will set everything up for you. Down payment assistance programs Jumbo Conventional FHA VA USDA Renovation Guild Mortgage works hard to understand your needs, your goals and what you value so that they can deliver what matters most to you. Their mission is, “In neighborhoods and communities everywhere, they will deliver the promise of home.” Guild Mortgage - Downtown Boise 1211 W Myrtle St Suite 300 Boise, ID 83702 (208) 333-8150
1980 S. Meridian
Rd., Suite 130
Meridian, ID 83642
United States
(208) 855-9848
(208) 761-4574
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