We have been operating in the city of Oakland since the very begging and provide for our clients a thorough research of the best practices for conducting a successful home search.
We believe in having the confidence of our clients and we acquire this by guiding them through all the stages Oakland Home Search and keeping them in a loop.
The important stages in obtaining a real estate are to arrange for the funds:
There are two important things that the lenders see in your eligibility for applying for a mortgage, GDS: Gross Debt Service ratio and TDS: Total Debt Service ratio. GDS ratio is the percentage of the gross income you earn in a month that can be used for your mortgage payments, utility bills, taxes etc. If you are dealing to buy a Condo, GDS includes half of the maintenance costs you spend in a month. A good GDS is always below 32% of the gross monthly income. Whereas the TDS ratio is the percentage of the gross income that you earn in a month that covers your loans and leases such as those on cars and other properties that you might have, housing costs per month and other debts such as credit cards and others that may incur. A good TDS is always below 40% of the gross monthly income.
Having been Pre Approved:
You need to get yourself pre-approved before you apply for the mortgage. This gives a much more practical insight for what and what not you can afford to buy. The amounts calculated once you get pre-approved are not always accurate and can overestimate your affordability but still gives you a good idea of your standing. You must bear in mind that having pre-approved cannot guarantee your application for the loan since the conditions of the market, rates of interests and your personal circumstances are highly changeable and never definite.
Process of being Pre-Approved
There are 2 ways for getting yourself pre-approved:
- By a typical method of contacting a Bank or the Credit Union,
- Or from a Mortgage Broker that acts as an intermediary between the lending firms and yourself.
Mortgage Brokers are responsible on your behalf and handle all the negotiations for mortgage terms and rates. Usually, they work several different lending firms and often get you the best offers amongst the most.
Your Credit Rating:
The Credit Rating is your record kept with the government and lists all the history of previous debts and loans. You must obtain a copy of this to ensure that it’s free of any errors and mistakes before you apply for a mortgage. You may obtain your copy of the Credit Rating from visiting this website: https://oag.ca.gov/consumers/general/your_credit this website contains thorough information for you to follow the steps in order to obtain the Credit Rating.
With these steps, you are good to go for buying yourself a wonderful house that befits your dreams.