Looking To Buy Your First Home
Steps 2 Take.
Purchasing your first home is fairly simple. We will outline some of the steps as well as provide videos that offer more details on the traditional process. Depending on your lender you may need more or less of the info provided below.
1.What You Should Know
A. You should know what your credit score is and the lowest score lenders will use to finance you.
B. You should have an idea of the maximum amount you want to pay for a mortgage that includes principal, interest, taxes, and insurance. (PITI)
C. You should have 20% down for a traditional loan or know the home buying assistance and grant programs in your area that require less down.
D. You should know your debt to income ratio (DTI) as this and credit will affect your interest rate.
E. You should get pre-qualified before you start looking to purchase your new home.
2. What Your Lender Needs
2. What Your Lender Needs
A. Proof Of Employment – At least 2 years on a job or in the same industry.
B. Last 30 days of paystubs and 3 months bank statements from all accounts.
B1. Self Employed – 12 to 24 months bank statements
C. Last two years tax returns. (some also require last two years W2’s)
D. Rental Verification for the last two years. (They will contact rental agency)
E. Drivers License or proof of identification.
F. Any proof of other income received that will be used in qualification.
3. Fees & Costs Needed After Offer Approved And Before Closing.
A. Down Payment
B. Inspection Fee
C. Appraisal Fee
D. Attorney Fee
E. Pre-Paids: property taxes, homeowners insurance, and interest
Depending on the type of deal you are structuring there may be more or less involved. If you are interested in learning more about real estate to get the best savings for your new home purchase
10 Pre-Closing Commandments Of Buying A Home
1. Thou shalt not change jobs, become self-employed or quit your job.
2. Thou shalt not buy a car, truck or van (or you may be living in it)!!
3. Thou shalt not use credit cards excessively or let current accounts fall behind.
4. Thou shalt not spend money you have set aside for closing.
5. Thou shalt not omit debts or liabilities from your loan application.
6. Thou shalt not buy furniture.
7. Thou shalt not originate ANY inquiries into your credit.
8. Thou shalt not make large deposits without checking with your loan officer
9. Thou shalt not change bank accounts.
10. Thou Shalt not co-sign a loan for ANYONE! (Pastor, Parents, Kids, Family, Friends, Associates, Love Interests…ANYONE)!!
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