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Buying your first home is an exciting journey, but it can also be a bit overwhelming. Don’t worry! Jim Barnett from Clayson-Mitchell Mortgage is here to help you every step of the way. Let’s break down the process into simple steps, focusing on the big three: Income, Credit, and Down Payment.

Step 1: Understanding Your Income

Your income is a crucial part of buying a home. It helps lenders decide how much you can afford to borrow. Here’s what you need to know:

  • How Much You Are Paid: Lenders look at your gross income, which is your total earnings before taxes and other deductions.
  • How You Are Paid: Different types of income can affect your mortgage application:
    • Salary: This is straightforward if you have a steady job with a regular paycheck.
    • Commission: If you earn commissions, lenders might look at your earnings over the past two years.
    • Overtime and Bonuses: Regular overtime or bonuses can count towards your income if you can show a consistent history.
    • Shift Differential: If you work different shifts, any extra pay for night shifts or weekends can be included.
    • Part-Time: Part-time income can be considered if you’ve been working steadily in that job.

Step 2: Checking Your Credit

Your credit score is another key factor. It shows lenders how reliable you are at paying back your debts. Here’s what you need to do:

  • Credit Scores: You have three main credit scores, one from each of the three major credit bureaus: Equifax, Experian, and TransUnion. Lenders often look at all three.
  • Debts: This includes all your current debts like credit card balances, car loans, and student loans. Lenders will check the balances and minimum monthly payments.
  • Improving Your Credit: If your credit score needs a boost, focus on paying down debts and making all your payments on time.

Step 3: Saving for Your Down Payment

The down payment is the money you pay upfront when you buy a house. Here’s what you need to know about it:

  • How Much You Need: This can vary, but many first-time buyers put down around 3% to 5% of the home’s price.
  • Where It’s Coming From: Lenders will ask where your down payment money is coming from. It can come from savings, gifts from family, or other sources.

Putting It All Together

Once you have a good handle on your income, credit, and down payment, you’re ready to take the next steps:

  1. Get Pre-Approved: This is where Jim Barnett comes in! He can help you get pre-approved for a mortgage, so you know how much you can afford.
  2. House Hunting: Start looking for homes in your price range.
  3. Making an Offer: When you find the perfect home, make an offer.
  4. Closing the Deal: If your offer is accepted, you’ll go through the closing process. Jim will be there to guide you through every detail.

Buying your first home in Utah doesn’t have to be stressful. With the right information and a trusted mortgage professional like Jim Barnett by your side, you’ll be moving into your dream home before you know it!

Feel free to reach out to Jim at Clayson-Mitchell Mortgage for more personalized advice and support. Happy house hunting!

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