Some potential home owners are on the fence wondering if they should wait until next year, or start shopping for a home now. The good news is, when you do decide to buy a home, you start building equity immediately. Here are some things to consider before you start shopping for a home.
Check Your Credit Score
Review a copy of your credit report (before the lender does) and make sure there are no errors. If you do find errors in your credit report, they can be disputed. Of course, a higher credit score will secure you a better interest rate. Map out how to pay down or pay off outstanding debt, if possible.
Have Your Documentation Ready
When you apply for a mortgage, you will need:
* Proof of Identity – Have your government-issued ID or driver’s license, social security card and birth certificate or passport.
* Proof of Income – This includes at least one month’s paycheck stubs, unemployment payment records, and any other documentation of regular income such as alimony or bonuses.
* Tax Documents – Be ready to show your last two year’s tax returns, including W-2 and/or 1099 forms.
* Bank Statements – The lender will want to look at your banking activity for the last 60 days to know you can manage your down payment and closing costs with sufficient cash reserves.
* Monthly Debt Documentation – Have your paperwork in order to document student loans, car loans, credit cards, etc. to establish your debt-to-income ratio. If you have no credit history, utility bills or records of other regular payments may be used to help you qualify for a mortgage.
* Additional Assets – Have documentation ready to support any additional savings, stocks, bonds, securities, etc.
Get Pre-Approval
By having written pre-approval from a lender, you know exactly how much home you qualify for. This helps you manage your expectations – and when you do make an offer – the Seller will consider it to be more valid.
We have a wide variety of loans to choose from. Give us a call to find out what program works best for you!