You are not along.
Luminate Home Loan officers are here to help you. It’s our mission to bring clarity and transparency to home loans – no more sending things into a blackhole and waiting for answers. It’s our goal to help you feel informed and engaged at every turn. Whether you’re a first-time home buyer, you’re looking to refinance, or have a unique situation, we’ll help you understand all the options, so you can have the home of your dreams.

Thing about the future.
Most can agree that buying a house requires larger commitment than signing a year long lease on an apartment. Think about what your long-term goals are. Do you want to start a family in that home? Get a dog? Start a business? According to the National Association of Realtors, homeowner’s live in their homes for an average of thirteen years. A lot can change in just thirteen years so make sure you are future-minded when you are starting to shop for homes.

Purchase price isn’t everything.
As with most things in life, there are many costs beyond just the “sticker price” of a house. Costs such as application fees, down payments, inspection fees, insurance, and real estate taxes add up pretty fast! Before you start your home-buying journey, make a list of all potential costs just to be sure there aren’t any surprises along the way.

There is a pre-approval process.
Unfortunately you can’t just pick out a house you want, put down some cash and move in the next week. There is a pre-approval process every home-buyer has to go through before moving forward and house shopping. Thankfully Luminate makes it accessible in just 4 easy steps.
1. Tell us about you: Talk through your goals and timing, so that together we can decide which loan option is the best fit for you.
2. Fill out the application: Gather you financial details and complete your loan application to start the pre-approval process. We’re always here if you have questions.
3. Get Pre-Approved: Once your application and credit report have been reviewed, you will receive a pre-approval letter to begin your home search.
4. Start shopping: Now that you’re outfitted with a pre-approval letter, your budget, and information about the loan process, you’re ready to get out there and start shopping for a home.

There are perks for being a first-time home buyer.
It’s true! If you are a first-time home buyer, the cards are in your favor. You can be eligible for greater tax breaks, federally backed loans, and you don’t have to adhere to the typical minimum down payment of twenty percent!

A new car loan could prevent you from getting your dream home.
When you know that you are gearing up to start your journey of buying a new home, don’t make any major changes that could impact your credit score. The pre-approval process is based on the time you submit your application. Decisions like getting a new car loan, or making changes in your income could potentially keep you from getting approved for a home loan.

Be realistic about what you can afford.
A good rule of thumb is keeping your housing expenses under 30% of your monthly gross income. Also, make sure to keep your debt-to-income ratio in mind when deciding what you can and can’t afford in a home. Your debt-to-income ratio is determined by how much of your monthly gross income is paying off debts throughout the month. A good DTI is typically under 36% when trying to get pre-approved for a mortgage. Thankfully, you don’t have to figure all this out on your own; a Luminate Home Loan agent is willing and ready to share their knowledge and find the right loan for you!

Although this process may seem like a lot (disclaimer it kind of is), getting the right team in your corner is all you need to make sure you are starting out on the right foot. Luminate Home Loans has many options for whatever stage of life you may find yourself in.

Get in touch today!

Tim Erickson
P: (652) 451-2273

Mark Henderson
P: (651) 398-3477