How To Get A Mortgage In McKinney
Your local McKinney mortgage company is here to help you get the home of your dreams.
How To Get A Mortgage In McKinney Texas
Looking for a Mortgage in McKinney can feel daunting. Whether you’re a first-time homebuyer or have sold many homes over the decades in the search for your final forever property, one common obstacle is the mortgage loan.
A few steps can better set you up to successfully get a mortgage in McKinney, Texas.
Track Your Finances to Get A Mortgage In McKinney
Before buying a home in Texas or any other state, it’s essential that you deeply understand your finances.
The best way to do this is to have a detailed account of how much money is coming into and out of your bank account each month.
Write out your debts. You can use an online calculator, a software program like Microsoft’s Excel, or manually on a piece of paper and use a calculator.
The desired end result is a detailed account of how much money is left over after you pay your bills each month that could potentially go towards a mortgage payment.
Another way to evaluate your finances when determining how much home you can afford is to use the 28/36 rule.
Financial planners often suggest this ratio. It keeps your maximum mortgage payment below 28% of your gross monthly income and your overall household debt below 36%.
Lenders often look at the percentage of household debt to income as your debt-to-income ratio or DTI when determining the size of mortgage you can qualify for. That means that both of these numbers are important to consider.
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Prepare Your Credit For A Mortgage in McKinney
Unless you pay in cash, your credit score is essential in convincing lenders that you can pay back your loan.
In today’s tech-centered environment, keeping track of your credit score has never been easier.
Several companies offer credit monitoring and regularly updated scores for free. Many financial products like bank accounts and credit cards sometimes also offer this service for free.
If your credit score is below 620, you may want to consider taking time to pay off debt and improve your payment record before applying for a mortgage in Texas.
This is especially important if you plan to pursue a conventional mortgage.
However, certain government-backed programs like an FHA loan or VA loan may accept credit scores as low as 580 or lower. With these loans, you may need to provide a higher down payment to secure the loan.
It’s also important to clear up any mistakes or fraudulently opened accounts on your credit report.
You can do this by challenging their validity with the credit bureau and reporting the inaccuracies for investigation.
Preapproval Vs. Certification
Give yourself a headstart in the buying process when competing against other home shoppers by getting pre-approved or certified.
A pre-approval used to be enough in most markets to make your bid on a home competitive.
Certified home buyers can often enter negotiations at a similar level as cash buyers by having more guaranteed funding through this certification.
The main difference between the pre-approval process and being a certified home buyer is having an underwriter review your file.
While any home loan officer can pre-qualify you while looking for a home in Texas, the application will eventually need to go through an underwriter before getting final approval once you officially apply for a mortgage.
The extra step of getting your account looked at by an underwriter beforehand can make all the difference when your offer is reviewed by the seller and their realtor.
Your Houston Mortgage Lenders
With over 30 years of experience, we’ve seen it all. Through ups and downs, economic crises and last minute loan technicalities, we know how to make home buying in Houston pain free.
We’re all about your bottom line. We work to find the best and lowest rates for you, and tailor the mortgage product to fit your budget. We’re a McKinney mortgage company that cares.
On time closing
Getting the paperwork and mortgage approvals can feel like a headache. We make sure the process go fast and smooth and ensure you’ll close on time.
Find a Realtor in Mckinney ,Texas
One of your greatest weapons you have when searching for a home in Texas is a good realtor. This is especially true if you’re new to Mckinney.
Your Mckinney realtor can also help direct you to a trusted mortgage best lender based on their other client’s past experience if you haven’t already found a preferred provider.
Make an Offer
With pre-approval for mortgage paperwork or proof of certification in hand, you can make an offer with the confidence of knowing your mortgage application will most likely be approved.
That is, as long as you have continued to maintain or have improved the income and credit score you qualified with.
After you make an offer, it’s time to finalize your application with your mortgage lender. If you have a mortgage certification, you’re most likely set to go.
If you have a pre-qualification or you haven’t approached a lender yet about a loan, you will need to provide up to date proof of assets, income, and credit score before approval to enter the closing process.
While obtaining a mortgage can be complicated, you don’t have to go through the process alone.