Purchasing a new home can be overwhelming at times especially if you aren’t prepared, and sometimes we just need a little push in the right direction to get things started. Here are some helpful tips to help you get into your dream home:
Get your documents & finances in order:
You should start with reviewing your credit report. Your credit report will be used by your lender as a measure of how you manage your finances. Better credit gets you better rates and a stronger negotiating position for terms. Most people are surprised of their report’s contents due to errors in reporting being common.
You will need to provide the following, as it applies to your loan type:
•A copy of your most recent 30 day pay stubs and the two most recent W2s (If you are self employed, you need two years of tax returns… all pages and schedules).
•Verification of any additional income.
•A copy of your most recent 30 days bank statements for each of your bank, IRA/401K, stock and mutual fund account.
•If you own any rental property, copies of the rental agreements and two years of tax returns.
•A letter from your employer stating your date of hire, position, salary and year-to-date earnings.
•Co-borrower information (the same information as listed above will be needed, as it applies).
•A copy of your divorce decree if applicable.
•If you are not a US citizen, a copy of your Permanent Resident Alien card (AKA green card, both sides).
•If you are not a permanent resident, a copy of your H1 or L1 visa.
•A copy of your current mortgage statement.
•A copy of your homeowner’s insurance policy.
•A copy of your deed.
•A copy of the note on your first mortgage.
•Property Tax verification information.
•Current value of your house.
•Outstanding loan amounts.
Get pre-approved to determine how much you can borrow.
Once you pre-qualify, you will have a good idea of how much you can afford. A pre-qualification gives you a no obligation quick and easy idea of what you can borrow. It is a great first step. A pre-approval actually verifies your income, credit and debt. This involves more time and documentation, but is very useful when making an offer on a property. Sellers will obviously consider a pre-approved offer over one with financing not yet secured.
Work with a Loan Officer to find the best mortgage for you:
We will review your loan application and supporting documents to ensure your loan package is complete and as strong as possible. Your Loan Officer will help you find the product that best fits your mortgage needs. There are many factors to be considered, i.e. How long do you plan to keep the loan? Would a fixed or adjustable rate mortgage be best for you? What other costs are involved? When should you lock your rate? Based on your needs and situation, your loan officer will show you which mortgage products work best for you. During the whole process, we are here to answer your questions with our years of experience.
Close your loan and move in:
As your closing date nears, your Processor and Real Estate agent will check its progress regularly. This ensures immediate awareness if an issue that must be dealt with arrises.
For your closing, you should bring all documentation your lending staff instructs you to bring. At the closing itself, everyone involved in your transaction will be present (buyer, seller, closing agents and attorneys). You will sign the necessary legal documents, pay your closing costs and escrow items, receive your closing documents and finally… YOUR KEYS!!
MOVE IN AND CELEBRATE!!
Remember, you should never hesitate to ask questions so that you understand the entire process.