PLANNING FOR A HOME PURCHASE

If you are preparing to purchase a home, your first step is to pre-qualify for a mortgage.

This will enable you to determine what you can afford to buy and programs and rates for which you are eligible.

Lenders will grade you on three things:

1) Your ability to pay – lenders calculate your debt ratio by dividing your total monthly expenses for housing, revolving credit and installment loan credit by your gross monthly earnings. 35-45% is a normal range but exceptions are made for borrowers with positive compensating factors such as a high credit score and ample liquid reserves.

2) Your willingness to pay – This is determined by your credit score. Mt. Olive Financial can perform a complete credit analysis and use professional techniques to raise your credit scores immediately as well as advise you on other short and long term techniques to boost your credit score even more.

3) Property Value – The rate you earn depends in part on the loan to value ratio (LTV) which is simply your loan amount divided by the value of the property. Loan to value ratios exceeding 80% require either mortgage insurance or a second mortgage. Mt Olive Financial can assist you by providing a predetermination of value by a licensed appraiser before your property is appraised. This is no guarantee of value, but an estimate based on comparable sales as there are many unknown quantities associated with the subject property.

We can assist you with finding various financing options for your scenario and provide assistance in structuring your purchase offer to provide maximum benefit including lowest rates and lowest closing costs.