What is equity? In short, it’s the portion of the property that you actually “own” which grows as you pay off your loan.
Showing that you can manage your day-to-day finances and save money is important when it comes to applying for a mortgage. In most cases, you’ll need to make a downpayment of at least 3.5% of the purchase price for an FHA loan all the way up to 20% for a conventional loan. If you haven’t been saving, start doing so right away to build up your home buying fund.
You and your lender will carefully review your income and credit report before you begin your home search – providing you with an accurate loan approval amount from the start. This means you can limit your search to only see homes that fall within your actual budget – avoiding the temptation of homes that cost too much.
Heidi Amirault – 704.909.9909
McKenzie Cochran – 706.832.3061