How Much Can I Afford?

It simply may be more affordable for you to buy rather than rent. Zillow reported that a homeowner earning the national median income and buying the national median-valued home is paying 15% of their income towards the mortgage payment.  If this same household decided to rent the typical home, it would pay 30% of its income in rental payments.

The first step to obtaining a mortgage is determining what you are qualified to borrow. Below are a few great tips and great steps to follow:

  • Schedule an appointment with TJC Mortgage, Inc. for your pre-approval. They will work with you to determine your price range and then supply you with a copy of your pre-approval letter.
  • Gather and supply all appropriate documents needed to apply for your loan. Following your application, do not make any big ticket purchases, like a car, or incur any substantial debt. Any changes made to your credit should only be those that will improve your rating.
  • A mortgage loan processor will collect your documents and verify your financial information. The processor will also work with you to resolve any problems with late payments or other issues.

The documents that will be needed include the following:

  • 2 full years of state and federal tax returns, or 1099 forms for those self-employed.
  • All financial statements from the last 2 months, including most recent retirement and investment account documents.
  • Photo ID for each individual listed on the loan application.
  • Written verification of employment, including your position and salary on company letterhead. A call to your employer may be necessary to confirm that your income is consistent and predicted to continue.
  • Cancelled utility and rent checks may be required for first time home buyers.
  • A letter from the contributor of gifted money (for the down payment or closing costs) that includes the amount of the gift and that the money will not be expected to be repaid.

“The ache for home lives in all of us, the safe place where we can go as we are and not be questioned.” -Maya Angelou –

Headquartered in Birmingham, TJC Mortgage, Inc. takes pride in helping to educate our home buyers and assisting with the best mortgage plan for each customer’s particular needs. Let us guide you in your dream of home ownership.