The first time buying a home can be an exciting, if daunting, time. It can be a lengthy process, and getting the mortgage you want is by no means a sure thing. You should prepare thoroughly for your purchase and ensure you understand how the process will work.
Your financial health will have to be robust to get the best terms on a mortgage. Often, it is best to wait until your credit score is strong and your debt levels are low. Read on for some of the most important considerations before you apply for a mortgage.
Find Out Your Debt To Income Ratio
Your DTI will determine whether you get approved for a mortgage. It is the percentage of your monthly income that will be spent on all of your property related payments plus all your debts. Aim to keep your DTI below 43% to be approved for a mortgage.
Save A Significant Down Payment
The larger your down payment, the better terms you will get on a mortgage. Save at least 20% or more. Consider delaying your purchase to give yourself more time to build a reasonable down payment.