Benefits of Homeownership
- Financial health and wealth
- Equity in your home
- The possibility of qualifying for federal tax deductions*
- The ability to increase your home’s value with renovation or upgrades
How much can I afford?
Factors that affect your financing:
- Debt-to-income (DTI)* ratio
- Assets
- Debt
- Credit
- Affordability
What is a Credit Score?
Your credit score is a numerical representation of your statistical likelihood to repay the credit that is extended to you. A credit score is a snapshot of a specific moment in time but can and will change with new actions and the passage of time
When you decide to purchase your first home, make sure you:
- Work with experienced mortgage and real estate professionals
- Become educated about the mortgage process
- Know how much home you can reasonably afford
- Get pre-qualified*
- Review a variety of loan programs to make sure you find the best option for you — your TownSquare Loan Officer will be your best resource
- Have any additional costs, renovations or upgrades in mind
- Have a general idea of how long you plan to stay in your new home
DOs & DON’Ts When Applying for a Mortgage
DOs
- Keep originals or be able to access on your employer/bank websites all pay stubs, bank statements and other important financial documents.
- Provide your Earnest Money Deposit from your own personal bank account or acceptable gift funds.
- Notify your Loan Officer if you plan to receive gift funds for closing. Gift funds are acceptable only if certain criteria are met.
- Notify your Loan Officer of any employment changes, such as a recent raise, promotion, transfer or change of pay status (for example, from salary to commission).
- Be aware that a new credit report could be pulled just prior to closing.
Don’ts
- Don’t close or open any asset accounts or transfer funds between accounts without talking with your Loan Officer about the proper documentation required for your loan.
- Don’t deposit any monies outside of your automated payroll deposits, particularly cash or sale of personal property, without notifying your Loan Officer.
- Don’t change jobs/employer without inquiring about the impact this change might have on your loan.
- Don’t make major purchases prior to or during your contract, such as a new car, furniture, appliances, etc.
- Don’t open or increase any liabilities, including credit cards, student loans or other lines of credit during the loan process.