Encompass Lending Group Blog

1) Pay Off Your Debt

Credit card debit especially limits your ability to save money. Paying off your debt will allow you        to start saving for a down payment on your first house. Trying to do both at once can get frustrating and expensive. If your debt exceeds 40% of your gross income then most lenders will not allow you to purchase a loan.

2)    Know How Much You Can Afford

According to Yahoo Loan Advice, as a rule of thumb, your annual mortgage payment, taxes and homeowner's insurance shouldn't exceed 28% of your gross income. Know how much of a loan you can take out and be able to pay back, and how much of a down payment you are able to afford.

3)      Be Aware of Different Types of TX Home Loans

Check out all types of loans that you can afford and see which payment plan best suits your situation. The more money you are able to put down, the more Texas Home Loan options you will have.

4)      Check Your Credit

Fannie Mae' implemented and "expanded approval" program, where consumers with slightly flawed credit can still qualify for mortgages at competitive rates that are as much as two percentage points lower than alternative financing. Checking your credit goes back to your debt. The better credit, the more options you will ultimately have.

5)      Look Into Down-Payment Assistance Programs

There is help for those who need it. Every year money is given to the state to distribute to low-income families for housing. To qualify for a down-payment assistance program, a consumer typically can earn no more than 80% of a region's median income. Call the Texas State Housing Finance Authority, county housing and community development office or mayor's office for an application.