Purchasing a home is a significant investment. It is a decision that one should not take lightly. Here are a few things to think about before taking the plunge:
Does staying in the same location for longer than one-year appeal to you?
With the fees and transaction costs (titles, inspections, legal, etc.) of buying and selling a home, you may end up losing money if you sell sooner than a year. If staying put is not in the cards for you, buying a home may not be either. What’s your credit score?
If your answer is "I don’t know,” you need to find out. This number is one of the first things a lender will look at when you apply for a mortgage. A few months before you start house hunting, get copies of your credit report, make sure your credit history is as clean as possible, the facts are correct, and fix any problems you discover.
How much home can you really afford?
The home buying process can be a very emotional process. It is smart to know exactly how much home you can afford before you begin shopping. That way expectations are managed ahead of time and you won’t fall in love with a house you really can’t afford. Most lenders recommend that you can spend 28% of your gross pay on a house payment. It is recommended that you do not exceed 36% of your gross pay on all of your debts, including your mortgage payment. You can use our online mortgage calculator to determine an estimated monthly payment. Prequalifying for a loan is a really smart way to know your spending limit. Do you have 20% to put down?
Most loans require the borrower to put down 20%. However, if you can't put down the usual 20 percent, you may still qualify for a loan. At Texas Gulf Bank we review each individual’s qualifications and work to create a loan that fits the needs of our clients while still adhering to our lending requirements.
Do you have the necessary documentation to apply for a loan?
To apply for a mortgage with Texas Gulf Bank you need the following:
- Completed mortgage application.
- Two valid forms of identification.
- 30 days of pay stubs.
- Last two years' W-2s.
If you are considering buying a home, call us today at 1-800-467-7216 or visit one of our local banking centers. Our talented loan officers are available to answer any questions you may have about the process of financing a home purchase.
Texas Gulf Bank is an Equal Housing Lender.