So, you think you’re ready to find your new Lennar home in the Portland Metro and SW Washington area, but you still have some questions. Buying a home is kind of a big deal, so we’ve put together a list of frequently asked questions to help guide you through the homebuying process and make your path to homeownership a little smoother.
What’s the first step in the homebuying process?
For most, buying a home is one of the biggest investments they will make in their lifetime, so it’s absolutely important to research, plan financially and make a strategic game plan – all prior to touring the communities, models and floorplans.
How can I determine my affordability?
Lennar makes it easy to know exactly how much you can afford. Afterall, there’s nothing worse than falling in love with a home and then realizing it is out of your price range. Use Lennar’s home affordability calculator for a quick and easy estimate of your purchasing power.
What if I want a more accurate impression?
For a more in-depth impression of your purchasing power, you can talk with a loan officer for pre-qualification. In as little as 15 minutes, you can get pre-qualified with the digital mortgage tool from Eagle Home Mortgage, Lennar’s affiliated lender.
What is pre-qualification?
Pre-qualification is the first step in the mortgage process. A lender will review your finances, which can include income, assets and debts. Afterwards, they will provide you with an estimate of how much money you may be able to borrow. A lender will pre-qualify you based on the information you provide them, so be sure everything is accurate and up to date.
What else can the lender help me with?
Lenders are a great source of information. Ask questions and take this opportunity to better understand how your financial history affects your purchasing power. Lenders can also help you figure out which components of your financial history you can improve and how to work on them.
What main factors influence my loan?
Three things – debt, credit score and down payment.
- Debt: The lender will look at your debt-to-income ratio (DTI), which measures your debt to your gross monthly income. A DTI is expressed as a percentage where generally, a ratio of 36% or less is preferred, although some loan options do accept higher DTI ratios but come with higher interest rates. So, try to eliminate as much debt as you can before completing an application.
- Credit score: Your three-digit credit score helps lenders assess whether you are a high risk of defaulting on the loan. You can get a free copy of your credit report once a year at AnnualCreditReport.com. Once you obtain your report, you can work with the lender to identify negative components of your credit history to address the issues and help raise your credit score.
- Down payment: The old 20% down payment myth has long been debunked. Down payments don’t have to be as high as you might think! Yes, the more you put down the less money you have to borrow, but there are plenty of loan options and down payment assistance programs that will help get you in your dream home at a down payment that works for you.
What’s the next step after pre-qualifying?
Pre-approval – this is a more in-depth review of your credit history and credit worthiness and is completed by an underwriter. This report will give you a more accurate idea of how big of a loan you can take out as well as what home price range you can afford. Once you’ve been pre-approved, you’ll receive a letter to present to a seller when you make an offer – this letter also shows you are a serious buyer with funds to complete a purchase.
Get all your ducks in a row! Not just financially, but personally. Are you contemplating a new career? Family? Marriage? Kids? Ask yourself the important questions that will affect this big decision.
I have all my ducks in a row. Can I start my search now?
Yes! And with numerous communities across the Portland Metro Area, Lennar makes it easy to find a home to fall in love with. Whether you are looking for townhomes, single-family homes or a Next Gen® – The Home Within A Home®, they have something for everyone. Plus, Lennar offers great resources with Internet Sales Consultants and New Home Sales Consultants who can answer all your questions about a community, home, floorplan and much more.
Start your search today here!
This is not an offer in states where prior registration is required. Void where prohibited by law. Copyright © 2020 Lennar Corporation. Lennar, the Lennar logo, Eagle Home Mortgage, the Eagle logo, Next Gen, and the Next Gen logo are U.S. registered service marks or service marks of Lennar Corporation and/or its subsidiaries. Date 06/20