Become the owner of the house in 2022

How to become a homeowner in 2022

Setting a goal to become a homeowner in 2022 is both exciting and challenging. There are several things that make the 2022 unique time buying a home in Texas. We are looking forward to helping many people interested in buying their first house this year.

The last two years have seen house prices rise in the state of Texas. In 2022, the housing market is likely to remain competitive for home buyers. In many areas of job growth, there are more potential buyers than homes that can be bought.

This article is a great place to start planning your steps to buying a home in 2022. We are here to help you understand the impact of your credit history, down payment options, mortgage pre-approval, and staying competitive in the housing market in 2022..

Here are the main “things to do” that you should have on your list to become homeowners in 2022:

Prepare your “Mortgage” loan

Credit score

To qualify for a conventional mortgage loan, your FICO credit score should be 620 or higher. With a score of 740 FICO or higher, you have the opportunity to get the best available interest rate on your mortgage. Setting a goal to increase your credit score is a great idea before you buy a home.

Paying bills on time, keeping credit balances low and using different types of loans – these are all ways to build your credit score over time. Find out more about your credit score and mortgage qualifications in this linked article.

What credit score is needed for a mortgage?

DTI – Debt to Income Ratio

Another aspect of your loan that will affect your mortgage options is the debt to income ratio. DTI is the amount of your gross monthly income that is intended to pay off your current debts. Student loans, credit cards and car loans are all common types of debt that are counted when determining your DTI mortgage qualification ratio.

If you want to become a homeowner in 2022, you may want to consider reducing your monthly obligations to pay off the debt you have. Repaying credit card balances or refinancing your student loans at a lower amount can help your mortgage qualifications if you have high monthly debt payments.

Learn more about DTI and calculation “How much house can you afford” in another useful article for potential home buyers.

Analysis of backup options

If you saved on a down payment for a house, in 2022 you are closer to becoming a homeowner than you might think. Traditional mortgage advice encourages potential home buyers to save on a 20% down payment on the house. In today’s market, however, waiting for you to save on a large down payment may cost you more than expected as home values ​​rise.

There are plenty of mortgage options that offer lower down payments, which will help you buy a house with only a 3-5% discount. Some specialized mortgage programs offer a 0% down payment option for those who qualify.

These are the minimum down payment requirements for the most common mortgage programs:

Classic mortgage: 5% minimum deposit
Classic loan for first home buyers: 3% minimum deposit
FHA Home Loan: Minimum deposit 3.5%.
VA Home Loan (for American Veterans): 0% minimum deposit
USDA Home Loan (USDA Rural Real Estate Only): 0% minimum deposit

Don’t have a deposit yet? Start yours “Custom advance savings plan” in 2022 and set a goal to become the owner of the house in the future.

Custom backup savings plan

Pre-approval of a housing loan

30 to 60 days before you want to start buying housing, you should apply for prior approval of a housing loan. The Texas Lending mortgage pre-approval process is much faster, but it’s a good idea to have your finances checked to make sure everything is in line before submitting an offer.

An interview with a licensed mortgage adviser on the financial aspects of buying a home in 2022 will allow you to ask questions to someone who has a lot of experience in today’s market. Having an expert in your team means that you have a guide to help you understand the flexibility of your budget and guide you through the process.

The pre-approval process begins with a phone call to talk about your goals, financial perspective and potential mortgage options. Learn more about “How to get pre-mortgage approval” in this referenced article.

Buying in a competitive housing market

Preliminary approval of a home loan is not only a recommendation for home buyers in a competitive market, it is essential. In 2022, buying a home in Texas will most likely mean competes in the “seller market”. Some preparation and a good home buying plan can help you make a timely decision.

Knowing that you have experts on your team to help you become a homeowner in 2022 is a real benefit. Contact us and ask any mortgage questions that come to mind. Ask us to connect you with a high-quality real estate agent in your area to help you find the right home and create an offer.

We are here to help you understand the process of buying real estate and have access to the best home loan options available to you. Contact us when you are ready to obtain prior approval to buy a house in 2022.

David Berry

Leave a Reply

Your email address will not be published.