Terry W. asked: Do you dream of a place where you can escape the demands of life? A place you can simply call your own? Here are some tips to guide you if this is your first time to buy a place you can call your own – your home.
Before you go to the bank
Review you credit history. Get a copy of your credit report from at least two different credit reporting agencies. You then set up a personal budget and savings plan. Lenders like to see a consistent savings pattern. You also need to ask yourself how much you can afford. To do this, go to a lender and get pre-qualified. Then determine if this will be a comfortable payment for you.
Now you are ready for house hunting!
You can do this with a realtor at no charge or on your own. Many realtors know what programs Lenders are offering so ask for recommendations. Seek out an attorney or ask people you know to recommend a good real estate attorney. Once you have found the house of your dreams, make an offer and put down a deposit. Finally, once all parties agree on the contract, have your attorney review it.
The Mortgage Process Begins
Meet with an Originator who will take your application. You will need to bring the following items with you;
1. A signed copy of your contract. Original pay stubs for the most recent thirty day period.
2. W-2′s for the past two years.
3. Signed copies of your Federal Income Tax Returns for the past two years.
4. Copy of divorce decree/separation agreement/court order stating the name of the recipient, duration of obligation, and the amount paid each month.
5. Savings, checking and money market account statements for the last three months.
6. Account numbers, monthly payment and outstanding balance of all credit accounts.
7. Addresses for the past two years (also names and addresses of your landlords, if applicable).
8. For VA loans, you will need the original Certificate of Eligibility.
9. For FHA loans, bring photo identification and your Social Security card.
10. Bring a check for the application deposit.
Your application will then go to a processor who will order a credit report, verify the deposit, employment, and any miscellaneous verification of credit as well as order an appraisal of the property you plan to buy. The next step is the Underwriting Department which conducts thorough analysis of your credit history, current financial obligations, income and employment, as well as the quality of the appraised property. After the loan has been approved, you will receive a commitment letter. This letter will outline any conditions that must be satisfied before the closing can be scheduled.
Your attorney and the lender’s attorney will then schedule your closing appointment. At the closing, all documents are reviewed and signed, fees are paid, and the title is transferred to you. You are now a homeowner!
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