Home Morgage, a common misspelling for Home Mortgage

Pre-Qualification: Knowing What Home Morgage You Can Afford
It used to be that a buyer could afford a home that cost two and a half times his or her annual salary and that the down payment was a minimum of 20 percent of the purchase price. Today, the situation has changed. These days, we finance our home purchases with a residential home morgage, sometimes buying a home with 100% of the purchase price financed. Today, the home morgage amount you can afford to spend on a house focuses on how large a home morgage you can afford. The issue of what you can afford usually boils down to one question: what can you afford to pay each month? We can help you calculate your gross monthly income, housing expenses, living expenses, and any long-term debt, so you can determine how much you'll have available each month to spend on a home morgage. Get a Home Morgage Prequalification today!

The Home Buying Process
Before you begin the home buying process, there are several key steps to help make your home buying experience run smoothly. First, you should figure out what you can afford. Estimate how much you can afford - and what your monthly payments on your home morgage will be. The traditional debt-to-income ratios on a home morgage are 28 and 36 percent. This means that your total monthly housing payment - including home morgage principal and interest, insurance, real estate taxes and any condo monthly assessments - should not exceed 28 percent of your before-tax monthly income. Then, when adding in all other consumer debt payments, the total figure typically shouldn't exceed 36 percent of your gross monthly income. However, each person's financial situation varies, so discuss what's right for you with a loan advisor.

Reduce Your Debt
The fewer credit cards you carry - and the lower the balances - the better. That's especially true if you have other debts such as a car or student loan. However, don't pay down or pay off balances with cash intended for a down payment. Even if you choose a low-down payment home morgage option, you're going to need cash available to pay the down payment and closing costs. The easiest way to generally improve your debt picture is to close all dormant credit card accounts. Contact card issuers and ask for instructions on closing the accounts. Instruct the card issuer in writing to enter into your credit report, ""Closed at request of cardholder."" That way, there won't be any reason to suspect that a credit problem caused the account to be closed.

Solidify Your Savings
If you're like most people planning on buying a home with a home morgage, you need to reduce your spending to save up for a down payment and closing costs. It's never too early to review your spending, cut out excess spending and set a budget.

Review Your Credit
It's important to understand if there are problems or errors that could affect your ability to qualify for a home morgage. To do this, you'll want to obtain a copy of your credit report. Because these reports contain your credit history, it's important that you're aware of what they contain - and whether the information is accurate. You might have excellent credit, but it is not uncommon to find an error in your report. Look for mistakes, such as accounts that are not yours. When you find errors, contact the creditors by phone or mail to correct the error. Then get another copy of the report 30 to 60 days later to make sure the corrections have been made.

Once have completed the above checklist and we know what you can afford, We will pre-qualify you, which provides you conditional proof of your ability to get a home morgage from us, up to a specified amount. Although our pre-qualification letter doesn't guarantee a specific home morgage to you, it does give you a rough idea of where you stand - and puts you one step closer to a purchase. Contact us today to get the pre-qualification process started, and take the first step toward purchasing the home of your dreams with a home morgage.