How Lenders Determine The Loan You Qualify For

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Today, we are talking about loans. The purpose of this blog post is to make sure you know how a lender decides the maximum loan amount that you are available to qualify for. There are really 4 major things that mortgage lenders look at when they are determining how much of a home you can afford. Knowing what lenders are looking for in advance will surely allow you to get your finances in order so you can qualify for the loan you desire. Here are the 4 things that lenders are really keeping their eye on:

1. Income
The first thing lenders will look at is your income. They want to look at what your household income will be. If you have been at the same job for over 2 years, that is a good thing for lenders. It's a bit more of a longer road if you are self employed.

2. Credit History
Lenders will look at factors such as how you are with paying your bills on time, or if you have had any delinquencies as far as credit goes.

3. Debt-to-Income Ratio
The next thing lenders will check is your deb-to-income ratio. They want to know how much money you owe vs. how much you make. You will want to make sure your debt is as low as it can be.

4. Down Payment
Finally, they will see how much money you have to put towards a down payment. 20% down is typical for a home, but the lender will make sure they know what you can afford to put down.

We like to let our clients know that even though sometimes, on paper, you will qualify for more than you are comfortable with, you do not have to purchase the maximum amount. You should be comfortable with your monthly payments and be sure to communicate that with your mortgage lender.

If you have any questions, or are looking to buy/sell/invest in real estate in Austin, please give us a call. We would love to help you!

Keep Your Home Protected While You're Away

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 Purchasing in the Austin area? Get full MLS access

You go on vacation to relax and get away from the stress of work. Worrying whether your home is safe should be the furthest thing from your mind. Lucky for you, we're here to help relieve you of that one stress that could follow you on your trip.These 6 steps will make you feel comfortable with the safety of your home while you're away:
  1. Ask a friend or neighbor: There's no better way to feel at ease than knowing there is a pair of trusted eyes on your home. Have a friend or neighbor stop by regularly to make sure everything is as it should be. You could even have them take care of a pet, or water your plants while they're at it.
  2. Don't tip criminals off online: While it's very tempting to shout your exciting vacation plans to the world, it's probably best to keep them low key - at least on the internet. It's just too easy for potential burglars to access that information. Besides, there are better ways to tell your friends about your plans than Facebook or Twitter.
  3. Leave the lights off: One of the biggest misconceptions is that leaving the lights on will prevent crime. In reality, leaving lights on for consecutive days makes it obvious nobody is home. It wouldn't be a bad idea to invest in timers if you feel more comfortable leaving the lights on.
  4. Stop your mail: There's no clearer sign a home is empty than an overflowing mailbox. Have your mail held by the post office or have a friend collect it for you.
  5. Unplug your electrical devices: This will help prevent fires and even save you a few bucks on your electrical bill.
  6. Remove your spare key: Don't make it any easier to enter your home than it needs to be. Either put your spare key inside the house, or have a friend or neighbor hold on to it.
Now you're ready to leave town with your mind at ease and feeling confident your home is protected. As always, if you are interested in buying, selling, or investing in the Austin area, I'd love to talk with you. Have a safe and happy summer!