Helpful guidance for your homebuying journey.
Prepare Your Budget
How much can you afford?
What makes a happy home? Family, love, special moments ... and affordability! Before focusing on specific houses, figure out how much of a mortgage payment you can carry without stretching your budget too thin.
- Know your debt-to-income ratio. This number carries a lot of significance because it indicates your financial health and whether you can add a mortgage payment to your current obligations. To calculate this number, add up your monthly debt payments and divide this total by your gross monthly income. The lower your ratio, the more secure your finances.
- Understand homebuying costs beyond the list price. The amount of your down payment greatly affects your monthly mortgage payments. Closing costs, taxes, and insurance also make an impact. Knowing what costs you can pay at closing and what costs roll into your mortgage give you a better sense of how much home you can afford.
Calculate your Debt to Income Ratio
- Add up your monthly payments
- Divide by your monthly income
An ideal debt-to-income (DTI)ratio is generallt considered to be 36% or less
Know Your Credit Score
Your credit score plays a vital role in securing a mortagage.
Along with your debt-to-income ratio, your credit score plays a vital role in securing a mortgage. The higher this number, the lower the interest rate you may receive and the more confidence lenders will have when providing you a home loan. A higher credit score shows you are a reliable and responsible borrower.
If you are already a South Carolina Federal member, you can access your credit score and report for free within Online or Mobile Banking*. When you analyze your report, look for any suspicious activity or disputes you need to resolve. These elements could be signs of fraud or mistakes by companies causing your credit score to drop.
If you are already a South Carolina Federal member, you can access your credit score and report for free within Online or Mobile Banking*. When you analyze your report, look for any suspicious activity or disputes you need to resolve. These elements could be signs of fraud or mistakes by companies causing your credit score to drop.
Get Pre-Qualified
How much can you afford?
Once your offer has been accepted, now is the time to officially apply for your home loan. We make this part as easy as possible. You will lock in your interest rate and we will order an appraisal on the home. As you are completing your application, you will need to provide the following information:
- Your current residence address, or addresses, for the past two years.
- Social Security numbers for all borrowers.
- Your employment history for the past two years. You'll need your employer's name, address, and phone number.
- Income information for all borrowers. You will be asked to include salary, overtime, bonuses, commissions, interest/dividend, retirement income, and any other regular source(s) of income.
- The price of the home you are buying, and how much you would like to borrow toward the purchase.
- The address of the property you are planning to purchase.
- Bank and brokerage account information, including the institution name and current balances.
- Information about any real estate that you own, including address, current market value, the amount you owe, the rental income you receive (if any), and the amount of your monthly payment.
- Information about your current debts, including the name of the creditor, the account number, the current balance owed, and the amount of your monthly payment.