You are a recent graduate from Bryant and Stratton College and currently working in your field of study. The forecast for your industry is looking very strong. Though you plan on keeping your full-time job and living in the area that you are currently living in, you would like to venture out and buy a house. To do this, you need to secure a bank loan. You’ve done your research and understand mortgages are among the toughest lines of capital to obtain. A lender will only lend money to you if they have a reasonable expectation that the loan will be repaid. Since you don’t yet have business credit, your personal credit will play a large role in getting approved for a loan.
You need to thoroughly understand your finances to prepare your paperwork for the bank loan. The bank will expect a full financial picture of your personal assets. It is also crucial to determine exactly how much of a mortgage you will need. Most importantly, going through this process will help you assess whether you are ready to apply for your mortgage today or at some point in the future.
Directions
You will use information from your budget (income, expenses, and savings) to calculate ratios and proportions to analyze your financial situation and determine if you are ready to apply for a mortgage.
