Homes and Mortgages


BUYING A NEW HOME is a process that begins with a look at your financial resources and your credit and bill payment reliability. You have to ask yourself if you're ready to buy a home, and applying for a mortgage loan can be a time-consuming and complicated task.

First, ask yourself a few question, review your financial history which mortgage lenders will use to determine if you qualify for a loan.

Here's a quick list of what you should look for and prepare:




  • Job Stability - Mortgage lenders look to your employment history to determine if you can count with the required, regular income to make payments for your mortgage and for other debts. You do not have to hold the same job to count as steady employment.

    If you can prove you have a steady source of income then you have shown the lender that you are a reliable candidate for a loan.

  • Bill and Credit Card Payments - Payment reliability helps the lender predict your future payment behavior. If you've paid your bills on time a lender can assume that you will do likewise with your loan payments.

  • Credit History - If you have not established credit history, you can present, instead, records of utilities bills or other such regular expenses through which you can prove that you can make your payments regularly.

    Lenders will acquire a credit report. Sometimes a credit report may not accurately reflect your true credit history or it may not show past errors or problems that have since been resolved, so be sure you can account for them.

    If your credit report is correct and you still show some problems, you may not be ready to buy a home; instead, work on bettering your credit history and any other financial problems that may arise.

    You can get your own credit report sometimes free and sometimes for a small charge through any local credit reporting agency. Just look in your yellow pages or you can request a free report online at www.consumerinfo.com

  • Downpayment Money - You should have enough money saved for a downpayment and closing costs. The downpayment depends on the home's price, so ask a lender or a real estate agent to determine the amount. It is typically about 5 percent of the price. The lender will want proof of this fund, so place it in advance in a savings account. The longer you have kept funds in that account the better you will look to the lender.


Home Mortgage Qualifying Worksheet



   Monthly Gross Income
Borrower's annual income
CO-borrower's annual income
Total gross annual income

   Mortgage Amount
Home purchase price
Down payment

   Monthly Housing Cost
Monthly payment (P&I) on 30-year loan
Use the mortgage payment calculator below to determine the amount
Condo or homeowner's fee (if applicable)

   Other Monthly Debt Payments
Car payment
Credit card(s) payments
Student loan
Other

Your results appear below.

Allowable monthly Housing Cost
$
Total Monthly Housing Cost
$
Allowable Total Monthly Debt
$
Total Monthly Cost
$

Do you qualify?

The criteria for qualifying is as follows: if your Monthly Housing Cost is not more than your Allowable Monthly Housing Cost, and your Total Monthly Cost is not more than your Allowable Monthly Debt, then you may qualify for a mortgage.

Don't worry if you have problems in one area; many times, some strong areas can compensate for a weak one. For a more thorough evaluation contact a local loan lender or get in touch with us.

Américas Real Estate has the trained personnel to help you with your mortgage, please feel free to contact us for more help.

Here's a list of other useful sites and links on mortgages and homes.

Fannie Mae Foundation - Americas largest supplier of conventional home mortgages funds.

HomePath - More information on buying a home of your own.
This calculator will determine your mortgage payment based on a rate for a 30-year fixed-rate loan with one point. The payment includes principal and interest. Use it to fill in your monthly mortgage payment on the worksheet above.


MORTGAGE PAYMENT CALCULATOR


Your Monthly Payment:

Mortgage Amount
Mortgage Rate




If you would like to know more about your financial options, please use our Mortgage Information and Calculators at Mortgage 101. Follow any of the links below to the calculator of your choice, then use your browser's back button to return to Americas Real Estate.

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El Paso, TX 79935-1607
Phone: (915)-593-2020
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