8 Questions To Ask To See If You're "Mortgage-Ready" To Buy A Home

By
Real Estate Agent with RE/MAX Executive | Charlotte, NC

 

Are You "Mortgage-Ready" To Buy A Charlotte Home?

 

Are You Mortgage Ready To Buy A Charlotte Home?

Thinking about buying a home in the Charlotte area this spring/summer? Feel ready to buy a home? If you've answered yes to these questions, you still need to answer the question of whether you're "mortgage-ready" to buy a home.

 

8 Questions To Ask Yourself To See If You're "Mortgage-Ready:"

  1. What's my FICO credit score? If you've never checked, now's the time to do so. Your FICO credit score is a reflection of your history of paying other bills and debts on time. The higher your score, the easier it will be to qualify for a loan at the best interest rates. If you've never checked your credit score, you can obtain it from any of the three national credit bureaus: Equifax, Experian, or Transunion. And the good news is that you don't need perfect credit scores. Some 44% of recent buyers had credit scores of 650-750 and just over 9% actually had lower scores in the 600-649 range. Just keep in mind that the higher your score, the lower your rate, so working towards a higher score is a "good thing."

  2. Do I pay my bills on time? Not only does not paying bills on time impact your credit score, lenders will also take into consideration whether your history shows a good record of paying your bills on time. Past habits can be a predictor of future habits and lenders want to be paid on time.

  3. Have I saved enough money for a down payment? Unless you qualify for a VA loan or a USDA loan, you will need some money as a down payment towards your mortgage.  When qualifying you for a mortgage, lenders will look at your capital and cash reserves available for a down payment and what's left over after the down payment.

  4. Have I saved enough money for closing costs? First-time buyers often don't know or forget that there are significant costs associated with obtaining a mortgage, separate from a down payment. A recent survey of 1,000 buyers by ClosingCorp revealed that 17% of home buyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees were than expected. These can run upwards of $4,000 to $5,000 and include items such as loan commitment fee, title insurance, title search, deed recordation, closing agent services, funds for escrowed insurance and taxes, inspections, surveys, appraisals, etc. Be prepared to pay 2-5% of the purchase price in closing costs.

  5. Do I have a fully funded emergency savings account? By definition, emergency fund savings are not meant to be applied against a down payment to purchase a home. Unexpected financial setbacks (job loss, serious illness) are a fact of life... you need to be prepared to deal with them without putting your home in jeopardy because you suddenly can't "afford" your mortgage payment.

  6. What's my long-term capacity to take on mortgage debt? Your current and future ability to make your mortgage payments on time is something a lender will also look at. That's one big reason they check your employment and income history and stability of employment. Lenders also look at your debt to income ratios to determine your debt capacity.

    And don't forget, that when you become a homeowner, there will be costs associated with maintaining a home over and above your mortgage payment to protect the asset, which is the lender's collateral. You need to be certain that your income can "cover" it all and provide for reserves to cover major expenditures down the line.  And your principle and interest are not the only costs associated with owning a home. Don’t forget about: property taxes, home insurance, HOA (homeowner’s association) fees, utility costs.

  7. Are my personal life goals "aligned?" If your immediate future goals include starting a family or a business, they might negatively impact how much of a mortgage payment you can afford. Be sure to account for any anticipated changes in your life that will make demands on your income and savings or strain your ability to pay a mortgage.

  8. Am I ready to settle down? Owning a home is not a one-year proposition. Once you've purchased a home, it can take a minimum of five years before you see a sufficient return so as not to sell it at loss as there are costs associated with selling a home, as well. 

 

 

If You Are "Mortgage-Ready:" 

3 Tips To Make Your Dream Of Buying A Home Come True 

 

3 Tips To Making The Dream Of Owning A Home A Reality

 

If you believe you're "mortgage-ready" and need an introduction to some of Charlotte area's top lenders to begin the approval process, contact Carolinas Realty Partners. We can help!

And when you're ready to begin your home search, contact Carolinas Realty Partners. We can help! And you'll be glad you did! (By the way, our clients say it best!)

 

 

SEARCH ALL CHARLOTTE METRO AREA HOMES FOR SALE

 

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SEARCH ALL CHARLOTTE METRO AREA HOMES HERE

 

Nina Hollander, Broker, Realtor / REMAX / Carolinas Realty Partners / Ph: 704.779.0813 / F: 704.341.3346 / E: Nina@NinaHollander.com / W: www.GreatHomesInCharlotte.com

Nina Hollander
Broker, Realtor, CRS, GRI, ABR, SRES, CDPE, SFR, SPS, CMRS
Carolinas Realty Partners with RE/MAX Executive Realty
Direct: 704-779-0813
Website: www.GreatHomesInCharlotte.com
Blog: http://activerain.com/blogs/ninahollander
Search for Charlotte Area Homes: www.HomesInCharlotteArea.com

2007 - 2016 Charlotte Magazine 5-Star Customer Satisfaction Award Winner

 

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Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, or financial advice.  For legal advice see an attorney.   For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.

 

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Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Roy Kelley 07/10/2018 01:00 AM
  2. Gloria Todor 04/27/2018 10:16 AM
  3. Ron Barnes 04/28/2018 06:22 AM
  4. Gabe Sanders 05/08/2018 11:00 PM
Topic:
Home Buying
Location:
North Carolina
Groups:
Inspiration !!
Buyer Information - What Buyers Need to Know in Today's Market
Advice for Buyers
Tags:
mortgages
mortgage advice
being mortgage ready
8 questions to determine mortgage readiness
3 tips to make a dream of buying a home come true

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Rainmaker
2,258,101
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Nina handles it....

Apr 28, 2018 12:53 PM #46
Rainmaker
221,057
Abby Stiller
Premier Realty Homes of SWFL - Cape Coral, FL
Real Estate Agent Serving Southwest Florida

Hi Nina Hollander Excellent post, you have covered everything what buyers should know and do before buying.

Apr 28, 2018 02:11 PM #47
Rainmaker
1,188,604
Bob "RealMan" Timm
Alliance Real Estate - Minot - Minot, ND
Bob Timm, Broker Associate, Alliance Real Estate

Another SUPER post Nina Hollander and very deserving of the Feature.

Apr 28, 2018 03:32 PM #48
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Bob "RealMan" Timm ~ good morning, Bob. Thanks. I don't write these for the feature, but hopefully to provide food for thought.

Apr 29, 2018 06:14 AM #49
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Abby Stiller ~ good morning, Abby, and thanks. I probably could have come up with more, but I'm not sure people would have read much more.

Apr 29, 2018 06:14 AM #50
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Richie Alan Naggar ~ hi Richie... well, I try... and I do go through alot of this with first time buyers when we first speak.

Apr 29, 2018 06:15 AM #51
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Fred Griffin ~ thanks much, Fred. I'm a big believer that the value we add to our clients is not in opening doors to houses, but in helping them make the right decisions in the right time frame. I don't run into many lenders who come at this from the same perspective... most are there just to put a loan on the books. 

Apr 29, 2018 06:16 AM #52
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Crystal Kilpatrick ~ good morning, Crystal, and thanks. I'm a firm believer that the "hard" work has to happen before they apply for a mortgage and start looking for homes.

Apr 29, 2018 06:18 AM #53
Rainmaker
3,386,030
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Nina Hollander ,

What a well thought out post perfect for those thinking of making a home purchase! I'm so glad to see this featured..... Your 8 questions to ask yourself covers the topic explicitly!

Apr 29, 2018 07:48 AM #54
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Dorie Dillard ~ thanks, Dorie... I probably could have thought of a few more questions to ask, but didn't want to overwhelm people!

Apr 29, 2018 08:19 AM #55
Rainer
245,830
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

And so we as agents and lenders spend a lot of time talking about the issues that prevent people from buying. Since I heavily lead generate I get the pleasure to talk to many people that simply are not prepared to buy today or next year? I will not include a list or diagram in my ads. I want to talk to everyone and then decide who is genuinely willing to take the necessary steps to get prepared for home ownership. Now I am rambling on, get back to work people...

Apr 30, 2018 01:56 PM #56
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Ron Aguilar ~ hi Ron... I think we all talk to people who are not ready to buy now and need guidance about how to get there. One way you can determine who are motivated is by whether they start doing what they've been told they need to do.

Apr 30, 2018 02:43 PM #57
Rainmaker
876,982
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Such a great post.  I'm surprised you don't have more comments. Another huge aspect of owning a home is the utility costs.  We never think of the hunders of dollars it takes to cover the extra costs that aren't included in a mortgage.  Always a good idea to get those costs from the seller, even if the number of occupants is different.  Great information!

May 02, 2018 11:21 PM #58
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Jan Green ~ thanks, Jan. I'm actually working on a post about "hidden" home purchase and ownership costs and utility and maintenance costs will be part of it.

May 03, 2018 03:43 AM #59
Rainmaker
47,726
Khash Saghafi
Liberty Home Mortgage Corporation - Cleveland, OH
Mortgage Loan Officer, Cleveland Ohio

These are definitely great questions Nina which, if the buyer is honest with themselves, will definitely have them best prepared for homeownership.

May 03, 2018 08:03 PM #60
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Khash Saghafi ~ good morning and thanks, Khash... as a lender you understand only too well how important it is to be prepared to be a homeowner.

May 04, 2018 03:58 AM #61
Rainmaker
2,732,995
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

This is a great well illustrated list for self examination during the lending process.

May 09, 2018 01:41 AM #62
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Sally K. & David L. Hanson ~ thanks, Sally and David. Appreciate your stopping by and the complimentary comment. Wishing you a great Wednesday.

May 09, 2018 04:02 AM #63
Rainmaker
784,300
Lanre-"THE REAL ESTATE FARMER" Folayan
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

Nina Hollander -I love your 8 questions to ask to see if you're mortgage ready to buy a home. A Must read for all first time home buyers. 

May 09, 2018 02:48 PM #64
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Lanre-"THE REAL ESTATE FARMER" Folayan ~ hi Lanre... thank you so much. I think even repeat buyers would be able to use some of these tips.

May 09, 2018 03:18 PM #65
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