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.