How a Good Credit Score can help you.
A credit score is a numeric representation, based on the information in your credit reports, of how “risky” you are as a borrower. In other words, it tells lenders how likely you are to pay back the amount you take on as debt. Credit scores are one piece of the puzzle that lenders look at to determine whether or not to lend to you. A good credit score can help you get access to a greater variety of loan offers. And if a lender approves your application for credit, a good or excellent credit score can help you qualify for lower interest rates and better terms.In general, the higher your scores, the better your chances of getting approved for loans with more-favorable terms, including lower interest rates and fees. And this can mean significant savings over the life of the loan.Having a good score doesn’t necessarily mean you’ll be approved for credit or get the lowest interest rates though, as lenders consider other factors, too. But understanding your credit scores could help you decide which offers to apply for — or how to work on your credit before applying. (read more)

DTI.  What is it? Why is it important?
Another issue connected with a mortgage is your debt-to-income ratio. The DTI will generally be the deciding factor on how large of a loan you can qualify for.The current government guideline dictates that your DTI must be no more than 45% of your gross monthly income. If you have $1,800 of monthly debt and $4,000 of gross income you would have a debt to income ratio of 45 percent ($1,800/$4,000 = 45%).We recommend not making any large purchases before closing on your mortgage. Inquiries on your credit report or additional debt on your credit card could cause problems with your application. By purchasing items such as furniture, appliances, or vehicles, it could cause your closing to be delayed or denied.You don’t want to suddenly add $200 a month to your rotating debt because you decided to buy furniture early.

Getting Pre-Qualified
We recommend that before you begin your house hunting, you begin the mortgage process. Discussing loan options and getting pre-qualified requires that a lender verify your financial information, and it serves as their commitment to lend a specified amount based on that information. It will give you a number of advantages.

 

• In the State of Arizona, a Pre-Qualification Letter is required with each Purchase Contract. Beginning this process early saves you precious time in the bidding process.
• When you find a property, the seller knows that you have a lender committed to backing your offer.
• It does give the assurance that you're looking at homes you can confidently afford to finance. Your efforts will be focused on properties that match your financing abilities.
• We are eager to help you get pre-qualified either through one of our Lender Partners below or with any other lender of your choosing.

What documentation will be necessary?