Financing Options: Home Financing Guide, Part 1
The foundation of a strong and successful home purchase.
A well prepared financial plan is one of the most powerful advantages you can bring to your home buying journey. Understanding your loan options, your credit profile and the role of savings creates a clear and confident starting point. The goal is not only to secure financing, but to choose a structure that aligns with your long term goals and strengthens your future investment.
At the Stephen Haw Group, we blend human insight with modern financial tools to bring clarity to the process. When you understand the numbers and the strategy behind them, every step of your home purchase becomes smoother and far more empowered. This first chapter of the Home Financing Guide offers the essentials to begin.
Start With a Green File
Your Green File is the backbone of your loan application. It contains the documents lenders rely on to evaluate your financial profile. Prepare copies of:
- Financial statements
- Bank account records
- Investment accounts
- Credit card balances
- Auto loan statements
- Recent pay stubs
- Two years of tax returns
Organizing these documents early streamlines the approval process and gives you a clear view of your financial readiness.
Check Your Credit Rating
Your credit score significantly influences the loan products and interest rates available to you.
Typical score ranges:
- 620 and above is considered good
- 680 and above is considered premium and may qualify you for better rates
If you need to improve your score, consult your lender for guidance. From this point forward, treat your credit like a protected asset.
Credit reports can be obtained through:
Equifax • equifax.com • 800.685.1111
Experian • experian.com • 800.392.1122
TransUnion • transunion.com • 800.888.4213
Strengthen Savings and Reduce Debt
A thoughtful financial approach includes preparing for:
- Down payment
- Closing costs
- Inspection and appraisal fees
- Immediate move-in expenses
Reducing high interest or revolving debt can significantly improve your loan qualifications. For example:
A monthly debt payment of $500 can reduce your purchasing power by approximately $83,000 on a 30-year mortgage at 6 percent interest.
Small adjustments today can create major advantages later.
Maintain Financial Stability
Lenders value consistency. During this period, avoid major financial changes such as:
- Career shifts
- Large purchases
- Opening or closing lines of credit
- Significant movements of funds
If you are considering any of these actions, speak with a lender first. Even well intended decisions can disrupt the approval process if the timing is not right.
Think of this phase as laying a strong foundation. Stability today supports better financing tomorrow.
A Confident Start to Your Financing Journey
Preparing your finances is not just about loan approval. It is about clarity, confidence and the reassurance that you are making choices aligned with your long term goals. The right preparation helps you move through the process with ease and momentum.
Next, we explore how to shop for a loan, compare lenders and understand the programs that may be right for you.
