Thinking of buying a home?

What You'll Need to Qualify in Today's Market:

  • Downpayment: Generally between 5-20% of the purchase price
  • Income Verification, Credit History & Asset Documentation 
  • Impartial Third-Party Appraisal: Your Lender Needs this to Verify the value of the house you want to purchase
  • Stable Income and Good Credit History 

You will interact with various Professionals during the homebuying process, all of whom are valuable resources & perform necessary roles. 

Steps to Take:

  • Find Out Your Current Credit History & Score. You don't want to start out with any surprises.
  • Start Gathering All of Your Documentation: Income Verification (W-2 Forms, Tax Returns, Employment), Credit History & Assets (such as bank statements to verify your savings) 
  • Contact a Professional to help you develop a spending plan & determine how much you can afford. 
  • Consult with Your Lender to Review Your Income, Expenses & Financial Goals to determine the type and amount of mortgage you qualify for. 
  • Talk to Your Lender About Applying for a Mortgage & Getting a Pre-Approval Letter. This letter provides an estimate of what you might be able to borrow. (provided your financial status doesn't change) & demonstrates to home seller's that you are a serious buyer. 

The Process

  1. Make sure you want a house. Be prepared for a long-term commitment. Be responsible enough to take care of maintenance and repairs and realize selling a house isn't just checking "No" on the lease renewal. 
  2. Assess your finances. Analyze your monthly bills and determine how much of a monthly mortgage payment you can afford. Get a copy of your credit report and make sure it's in order. If not, improve your credit or fix any problems. Figure out what you can afford as a down payment and research mortgage options.
  3. Find a home. Decide what attributes you want from your house in terms of bedrooms, bathrooms and amenities. Get a real-estate agent who can help you look. Make an offer and wait for it to be accepted.
  4. Get a mortgage. If you are pre-approved, this is already done. If you're pre-qualified, now is the time to get approved. Look into public and private mortgage options. Choose the option that makes the most sense for your budget. 
  5. Close. The closing process can be difficult. Make sure you have homeowner's insurance. Get the house inspected, do a title search, get a land survey completed. Do a final walk-through if possible.
  6. Move in. No explanation necessary. 

Do's & Don'ts During the Loan Process

Lenders  will  update credit prior to closing! 

Good credit is critical when it comes to obtaining the best interest rates and tea on a mortgage. Here are some credit dc and don'ts when looking for a mortgage DON'T change your financial picture after you close. Call your mortgage professional when in doubt!

Do Stay Current On Existing Accounts. One 30-day notice can cost you.

Do Continue To Use Your Credit As Normal. 
If it appears you are changing pattern, it will raise a red flag and your score could go down. 

Do Call Your Loan Officer Below. Cali before making any address or credit change that may affect your score. 

Don't Apply For New Credit. Every time you have your credit pulled by a potential or lender, you can lose points from your credit score. This includes co-signing for a loan. 

Don't Pay Off Collections Or Charge-Offs. If you want to pay off old accounts through escrow. Request a letter of deletion from the creditor. 

Don't Close Credit Card Accounts. If you close a credit card account, it may apply your debt ratio has gone up. Closing a card will affect other factors in the score, including cret history. 

Don't Max Out Or Over Charge Credit Cards.

Try to keep your credit card 30% below their limit during the loan process. If you pay down balances, do it across the board.

Don't Consolidate Your Debt. When you consolidate all of your debt onto one or t credit cards, it will appear that you are maxed out on that card and you will be penalized. 

NO MAJOR PURCHASES, Cars, Boats, etc.

FAQs