Many people looking to buy a house have absolutely zero credit, and therefore did not qualify. One of the best ways for people to start building credit is by using secure credit cards. Here are three tips you need to know about using secured credit cards to help you build and establish credit to qualify for a mortgage. 1 Make sure you get your money back after the six month period. 2 Do not put more than $500 on the card for your credit limit. 3 Make sure it is a card that gives you some type of cash back or rewards.

One of the biggest mistakes that many people make when looking to qualify to buy a house is that they look at the total debt they have and think that automatically makes them not qualify. The reality is that it is not the total debt but the monthly payment that impacts your DTI. You may have a $30,000 car, but a 3 year term will have a very different payment than 5 year term. Same goes for credit cards as well as student loans. If you are not sure how much your debt is impacting your ability to purchase a house, please make sure to give us a call or contact us.

Many people think it is a better idea to save 20% to put down when buying a house. Yes, you will save on Private Mortgage Insurance by putting 20% down on a conventional mortgage, but in this market, waiting to save 20% could cost you $100K in Equity. Right now, with the lack of inventory in the market, houses are selling extremely fast. That is also causing the price of homes to rise significantly faster. In just 1 year, homes have been rising on average at about 15% in value. Not only that, but on top of the values of houses going up, people are paying Cash Over Asking to ensure they get the house they are looking at. Lastly, by waiting, the house you liked last year may cost you so much more that you can no longer afford it. And the houses you did not like before may now be the only houses you qualify for. This is why, when you are looking to buy in a crazy market like this, it may not be the best idea to wait until you have 20% to put down.

What are the 3 biggest reasons people are denied for a mortgage? 1 - Lack of Credit 2 - Lack of Income or Bad Debt to Income Ratio 3 - Lack of Assets or Cash for Closing In reality, qualifying for a mortgage only comes down to those 3 things. There is no reason for you to complicate the process, focus on those 3 things, and let us know if you have any questions.

This is one of the absolute first steps that need to be taken when looking to become a homeowner. A budget is the foundation of your finances along with your credit. The best thing you can do is learn to break down your finances so that you know exactly how much money you bring in and where all your money goes. Once you have an idea of what you bring in, you then can focus on where it goes, and how to set yourself up to buy as quickly as possible. The sooner you start paying a mortgage, the sooner you stop making your landlord rich!