Are you thinking about buying a home but don’t know where to start? Well let us here at AmeriMade Realty point you in the right direction.
First and foremost you will want to find out what your buying power is and what your price limits are for choosing the right house. This means you will have to find a reputable and trustworthy lender or mortgage broker to help get you pre-qualified. To find the best lender or broker, talk to friends, family or coworkers to see whom they recommend. Once you determine who that is and you call and make an appointment to meet with him/her, you’ll want to be prepared for the appointment. So here is a general guideline for what information and documentation you may need to bring with you. Remember, every lender/mortgage broker is different and may require different things, but these are some of the common items requested:
· Identification, including social security numbers or individual taxpayer identification numbers for anyone whose name will be on the mortgage
· Your addresses for at least the past two years
· Statements from your checking and savings accounts for the past three months
· Account information — including balances — of all checking, savings, retirement, or money market accounts
· Your most recent few pay stubs, W-2s, or other proof of employment and income verification
· Your income tax returns for the past two years
· Evidence of any other income you receive such as child support orders, Social Security award letters, etc.
· Canceled checks or proof of payment for expenses such as rent, utilities, phone bills, etc. to establish payment history
· Information regarding any other debts such as car loans, student loans, credit card payments, furniture loans, etc.
· Gift letters, if you are using gifts from parents, relatives or organizations to help cover the down payment or closing costs (gift letters state that the money you received is a gift and will not have to be repaid)
· Divorce agreement papers if applicable
[Also, if you’ve already chosen the house you want to buy and have an accepted offer, you’ll want to bring a copy of the purchase contract with you]
Once the lender processes all of the information, he/she will help you determine what price point you should be looking in when choosing your home. Once you know your price point, find a trusted Realtor to help you begin your search. Don’t forget to take your pre-qualification letter with you.
Once you start working with a qualified Realtor be sure to ask that person what to expect during the rest of the home buying process. Best of luck to you and happy house hunting!