Are you ready to buy your first home? While this experience can be exciting, but it can also be stressful if you are not prepared. Here is a quick checklist to guide you through the process.
- Figure out your Finances: This is a first crucial step in the process. You need to know where you stand with your savings and budget. Do you know how much you plan to use for your down payment? How much mortgage can you and your family afford? Are you in any debt? Be sure to factor in all the expenses and bills when you plan such as utilities, taxes, homeowner’s association fees and more.
- Check your credit score & know your DTI: You should also be aware of your credit score which plays a critical role in determining your rates. You will need a credit score of a minimum of 620 to get approved by Devon Islamic. Your DTI (debit to income ratio) cannot be more than 45%. Debt to Income Ratio (as defined by Investopedia) is a personal finance measure that compares the amount of debt you have to your overall income. Lenders, including issuers of mortgages, use it to measure your ability to manage the payments you make each month and repay the money you have borrowed.
- Choose a lender: Next step is researching your mortgage company options and selecting a lender that works for you. With Islamic Financing your options may be limited, however, rest assured you can easily find the right one that will align with your needs and values. Devon Islamic offers highly competitive rates, personalized and excellent service. You can contact one of our Islamic Financing Specialists for a no obligation/free consultation and we would be happy to address any concerns or questions.
- Get Preapproved, if not at least Prequalified: This is where the real excitement begins as you are one step closer to shopping for your home. Often, people assume preapproval and prequalification are synonymous. A preapproval holds more weight than a prequalification, however, having either one is ideal before working with a realtor and beginning to shop for homes. A prequalification is more of an estimate of what you can borrow based on some basic financial information. A preapproval requires more thorough documentation, credit check, employment verification and more. This gives you more credibility in front of your realtor and sellers. Here’s what you need to get prequalified.
- Find a realtor, start shopping, and start closing: You are now ready to begin house hunting with a realtor of your choice with a budget in mind. A trusted, knowledgeable, and professional realtor can guide you through this process seamlessly. There is a lot to consider when finding the right home such as the location, school district, taxes, neighborhood and much more. Once you finalize your home then begins another process of making an offer, negotiating, conducting a home appraisal, inspection, final walkthrough and then closing.
This process can sometimes seem quite daunting, but our Islamic Financing Specialists are only a call away. Reach out to us today by calling 888-90-DEVON to get started.