PDF Home Buyer's Guide - Amazon S3

Home Buyer's Guide

Easy answers on your path to home ownership.

GET YOUR FREE, NO OBLIGATION PORTFOLIO ANALYSIS

Pursuing Home Ownership

Congratulations on your decision.

The mortgage team at LegacyTexas has prepared this Buyer's Guide to assist you in preparing for your purchase, making informed decisions, securing the best financing and finding the right home.

If you want to learn more about the mortgage process or have questions about the information in this guide, just let us know. One of our expert loan officers will be glad to assist you.

We wish you much success as you begin this exciting journey.

Table of Contents

Before You Begin 2 Getting Started 4 Searching for a Home 5 Next Steps 6 Loan Types 7 Underwritting 8 Terms to Know 10 Home Buyer Checklist 12

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Before You Begin

Before You Begin Your Search

Important questions to answer.

1. How soon do you plan to purchase a home?

Immediately

In the next few months

More than a year

2. What is your credit score?

Under 580

581-619

Very Poor

Poor

620-679

Fair

680-720

Good

721+

Excellent

Your credit score can have a major impact on your mortgage. Borrowers with higher credit scores generally have more loan options at lower interest rates.

While a credit score can range from 300 to 850, most are somewhere between 600 and 700. Several factors influence your credit score, including current and previous account information reported by credit card companies, lenders, banks, municipalities and collection agencies.

35% On-time payment history 30% Current credit usage 15% Credit history 10% Recent credit inquiries 10% Types of credit accounts

If you are unsure of your credit score, you can order a FREE copy of your report at .

Learn More Here

Qualifying for a Mortgage

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3. What is your annual household income? $

4. What are your current assets and monthly debts?

Liquid Accounts

Checking & Savings

$

Investments

Stocks, 401(k), IRAs, etc.

$

Life Insurance

Cash value

$

Other

Cash and items of value

$

Total Cash And Assets

$

5. What price range do you have in mind?

$

6. How much do you have available for a down payment?

20% ? Recommended by many lenders ? Co private mortgage insurance (PMI) required

3.5 to 5% ? Certain government (FHA) and conventional loans

0%

? Select programs and VA loans

Home Loans

Mortgage, HELOC, etc.

$

Auto Loans

Include co-signer loans

$

Credit Cards

Include co-signer accounts $

Personal Loans

Student, unsecured, etc.

$

Other Obligations

Child support, alimony, etc. $

Total Debt

$

Learn More Here

Understanding Housing and Debt Ratios

Monetary Gifts

Many lenders will allow you to use gifted funds toward your down payment. However, you will need to provide documentation stating the money is indeed a gift and will not be repaid. In some cases, down payment assistance may be available. Ask your mortgage lender for details.

Remember, you will also be responsible for paying closing costs and additional fees. See Page 8 for more information.

7. How long do you plan to live in your home?

1 Year 2-5 Years 5-10 Years 10+ Years

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