Whether it is Porsche or any other location in GA, if you want to buy a home, you may consider applying for a loan as it’s an important consideration. Once you are done with your research on the best houses, the next step is to obtain a home purchase loan in GA. In case you don’t already know, there is a lot that goes into the loan approval process. In case you will be applying for the first time, it is important you are familiar with the 3 C’s of home loan and their significance in mortgage application-
- Capability
Capability is your ability to pay for a loan. Your income, debt-to-income (DTI) ratio, and your employment status will come into play here. If your DTI ratio is over 35%, it means that you will need to pay more interest. You may even be denied a loan by the loan provider. To boost your chances of getting a loan to buy a house, you should try working on lowering the DTI ratio to make it below 35%. You can achieve this by paying down your current debt or by avoiding a big investment, such as a car or any other valuable item.
- Condition (Market Condition)
You need to determine whether it is a buyer or seller market at present. Also, it is important to know your credit score and the current interest rate on home loans. These are things that can hugely impact the prices of houses as well as your ability to buy a home in this community. Lenders review your credit score to analyze your history with credit management. If you have bills due for months or your accounts are not in good standing, your credit score will be hugely hampered and may also minimize your chances of getting a home loan.
- Capital
Capital is the money you currently have or will have- to buy a new home. It determines your financial strength. Although down payment is not compulsory as there are loan programs that do not require a down payment for house purchase, home buyers, ready to make a down payment has a slightly better chance of obtaining a loan. In-home loans, collateral are the home itself.
So, these were the 3’Cs of a home mortgage loan, which is very crucial to be understood for a loan application. Contact an experienced home mortgage expert who can help guide you through the home buying process and buy your dream home.
You can look for the home purchase loan programs in GA, you can easily find the lenders online or the brokers who can help you.