Over the years one of the most common questions that I’ve been asked by home buyers is how much of a Houston Texas home can I really afford?

The answer to this question really depends on who you ask and although one common recommendation that Realtors will make is to use a mortgage calculator to determine how much of the monthly payment you can afford for a Houston Texas home the reality is that it’s always better to consult with a mortgage lender first before making any assumptions regarding the size of the home that you can buy or how much you can really afford.

Before Meeting With a Mortgage Lender Do This

Although it’s important for you to meet with a mortgage lender as soon as possible before you start your home search, the reality is that your credit score is one of the most important factors that will determine how much of a mortgage loan you can really qualify for .

The best way to find out exactly what your credit score is right now is to pull copy of your three in one credit report online so that you can get a good idea of what your credit score is with the three major credit bureaus: Equifax, Experian and Transunion.

Your three one credit report will cost about $30 but the expense is well worth it because, if you pull your credit report at least three months in advance before you decide buy a home this will give you plenty of time to resolve any negative items that may be on your credit report which might include: unpaid bills or debts that do not belong to you.

To resolve inaccuracies with your credit report you should contact the credit bureaus in writing immediately and ask them to remove each of that inaccurate or invalidated items on your credit report because, it will take at least 30 days or possibly longer for the credit bureaus to investigate one or more items on your credit report before following up with you in writing or removing those items altogether.

Get Your Financial Life in Order

Once you’ve decided to pull copy of your credit report the next thing that you should do is spend some serious time organizing your finances including your financial paperwork like documentation of income, expenses and all sources of income that you have received in the last year including financial gifts from relatives, family members or friends because, your mortgage lender will want to have a clear picture of your total income since they want to have confidence that you will have the ability to repay your mortgage loan.

What You Will Learn From Your Mortgage Lender

Meeting with a mortgage lender right now will also enable you to get your finances in order because, many lenders will also be able to make recommendations including which debts you should pay down to lower your debt to income ratio or certain credit cards that you should pay off. 

Do You Have Questions Or Comments? If So, Contact Me

Are you planning on buying a Houston Texas Home in 2016 and have questions? If so, please contact me anytime by calling (713) 819-1642.