The road to home ownership for NJ new homes, begins with a mortgage pre-approval process as the first step to buying your new home. The home buying journey is an exciting time and it’s important to understand the financial process for home financing. Once you know what to expect regarding the financing of a home, then you know your options for the type of mortgage that will work best for you.
You will also want to take time to learn the lingo and understand the settlement process. There are plenty of resources to help you understand terms and the process, and your local lender or relationship bank might also be a great source to find helpful, trustworthy information.
Before you can get pre-approved, you should understand your income and expenses. Begin with a spreadsheet of your current monthly bills and expenses. This spreadsheet will help you figure out what you can actually afford to pay on a monthly basis toward a mortgage. Keep in mind that in addition to the monthly principal and interest, you will also pay into escrow for property taxes, and insurance. This part of the process will prepare you to be in the best situation possible when you enter into the buyer agreement for a NJ new home.
Learn how to calculate your “Debt-to-Income Ratio” or DTI. A DTI compares the monthly amount that you owe to the amount that you earn. This number is a percentage showing your gross monthly income (before taxes) that is applied towards rent, mortgage, credit cards, or other debt payments.
Next before any large purchase, such as a NJ new home, improve your credit debt limit. After a lender checks your total debt ratio, they can suggest ways to improve, if helpful. It is always a great time to start saving for a new home. If possible, pay off any smaller debts you owe such as a car payment that only has a few months left on it. Now is NOT the time to open a new credit card or open a new line of credit.
Lenders will look at everything and use your credit score as a key factor to determine whether or not to approve you. Take time to learn about all of the areas that affect your credit score and the credit approval process. This logic and course of action will not only help you with a new home purchase, but also with so many things moving forward in life too.
Once you have become comfortable with the lingo and know your credit, then work with your lender to learn about loan choices that would be available to you. Determine which type of loan is the most suitable, and complete the process by getting pre-approved for a loan. Because you have done your homework and already know how much money you can borrow, you will know what price range to consider and can move quickly into entering a buyer’s agreement for your NJ new home.
Please see our 2 communities of Kresswood in Voorhees and Menantico Estates in Vineland and reach out to our preferred lender for those communities, Greentree Mortgage, with Eric Reeber’s contact information: Eric Reeber, Director, Green Tree Mortgage: Cell: (856) 261-7256 | Email: ereeber@greentreemortgage.com
Now, as you put a contract on a NJ new home, you can breathe easier knowing what to expect during the mortgage pre-approval process. Visit the Schaeffer Family Homes website to explore interactive floor plans, begin to personalize and design your new home online, and view available plan options. Contact us today at 856-208-5118 or email general.info@schaefferhomes.com to reserve your new home in NJ today!
