June 14, 2017
When you finally decide to stop renting and start looking
for your very own home, it’s an important as well as an exciting decision.
There’s a lot more that goes on when buying compared to just signing another 12
month lease but before you get started, here are five important tips that will
How’s Your Credit? Have
you looked at your credit report lately? If you haven’t, it’s time to. Even
though you know you’ve made timely payments on your credit card and automobile
loan you still want to check. Unfortunately, credit reports are known to have
errors on them and there’s the slight possibility someone else’s bad credit is
showing up on yours. You can get a free copy once per year at
annualcreditreport.com, a free service provided by the three main repositories.
Talk to a Loan
Officer. Don’t start visiting a bunch of websites to get information about
how to qualify for a mortgage. There are so many different programs and guidelines
and some loans are better for first time buyers than others. Speak to a loan
officer who can walk you through the process letting you know what to expect
and when. Your loan officer will be with you all the way to the settlement
table. Your loan officer will also tell you about how much you can qualify for.
Get Your Paperwork
Ready. You’ll be asked to provide your fair share of paperwork to accompany
your loan application so start gathering your financial information such as
recent copies of your bank statements, recent pay check stubs covering a 30 day
period, W2 forms from the past two years and if you’re self-employed you’ll
need your two most recent tax returns.
Get Your Preapproval
Letter. After speaking with your loan officer, you’ll be provided with a
list of things you need to submit. This is your paperwork we just mentioned.
After your conversation and after you’ve submitted a loan application (you
don’t need a property picked out to submit a loan application) your loan
officer will review the documentation, order a credit report and issue a
preapproval letter to you. This letter lets the sellers know you’ve already
applied and just waiting to find a property.
Ask Questions. Don’t
be shy. When you’re not sure about something, take a step back and get some
clarity. No matter what question you have you can trust your loan officer has
already heard it. There’s a lot involved here and you’ll encounter lending
terms you may not be familiar with, so keep the communication lines open.