Shea Homes is committed to help you by providing a few simple steps you can take to get prepared and feel confident in your home buying decision.
Let Shea Homes Help You Get Your Ducks in a Row
- Gather some recent pay stubs, W-2's or tax returns.
- Collect your recent statements for any loans or revolving credit
- Make sure to include overtime, bonuses, or commissions.
- Project your household income for an entire year, then divide by 12 to get your "monthly gross income".
- These debts may include car payments, student loans, credit card payment, or even child support payments.
- Do not include any "bill payments" such as day care, cell phone, cable, or utilities.
- Also, you should not include any debts that will be paid off in the near future.
Then take another folder and label it "Debits". Take your most recent statements from any loans or revolving debts such as credit cards and place them in this folder.
Enter the information from these statements in our handy worksheet.
Most mortgage companies use a DTI of 45% to determine the amount you can borrow.
To Calculate Your
Multiply your gross monthly income
= total max payments
Subtract your total max payments
- your current monthly debts
= new home budget payment
This payment is referred to as PITI. There may also be additional payment obligations such as HOA fees and, if you are putting less than 20% down, Private Mortgage Insurance usually referred to as PMI.
During the pre-qualification process,
your Loan Originator will:
- Help explain the entire mortgage and home buying process to you.
- Answer any questions or address any concerns you may have.
- Review your income, assets, debts, and credit with you to establish how much home you can buy.
- Tell you about all the different mortgage programs there are, and help you decide on the one that's right for you.
- And work with you to set your game plan as to what the next steps are for you to buy your dream home.
At the end, you will feel confident knowing your financing strategy is secure, and that your dream of homeownership can become a reality.
Once we have received your initial application, a licensed Shea Mortgage loan originator will contact you to review your information together. During this review, your loan originator will be able to answer all your questions about the mortgage process, including looking at different mortgage options to help you select the one that's right for you.
We will review all the documentation needed to complete your home closing, and provide you with a detailed explanation of mortgage interest rates and closing costs.
Lastly, we will go over the "next steps" in the process. This is important so that you can feel comfortable, knowing what to expect along the way.
This makes completing the loan application, and the whole loan process, go much smoother.
If you were saving funds to close, you will want to check in with your Shea loan originator to see how you are tracking. This is also a good time to review your application and let us know if anything has changed.
Additionally, you will need to get your hazard insurance lined up, and ready for closing. When you have selected your insurance agent, you can have them contact your Shea loan processor to make sure they are all set for closing.
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