Here are 3 Steps to do before shopping for a home:
Step #1 – Get pre-qualified before you go.
By pre-qualifying with a knowledgeable mortgage consultant you’ll know exactly what price range you can afford. Many times buyers get excited about a home they have found; and want to make an offer. However, if you don’t have a pre-qualification certificate the seller may not seriously consider your offer. There may be other offers on the table at the same time. The seller then would most likely accept the one from the buyer who is pre-qualified.
Step # 2 Get your documentation in order.
By providing all the necessary documents promptly you’re process will go quicker and smoother, and that’s what you want. Here are some items you will need. If you are employed by a company, please provide your last 2 years W2’s, your last month’s pay stubs, and the last 3 months statements for checking accounts, savings accounts, money markets, stocks, bonds, and retirement accounts. If you are self-employed, you will also need your last 2 years personal and business tax returns, and your year to date profit and loss statement.
The 3rd step is: Pay your bills on time.
Make all scheduled bill payments on time before and during the loan process. The most important bills a lender looks at are: your rent or mortgage payments, and then installment loans such as your car payment, and finally revolving payments which include your credit cards. The lender will run your credit again right before closing and if you show recent late payments or new purchases, it can slow things down or even change the program that you’ve qualified for.
Here are some things to watch for and avoid; the don’ts.
Don’t Do #1. Do not volunteer your social security # freely
Most lenders are using a credit scoring system to rate your ability to pay your bills. What most banks and mortgage brokers won’t tell you is that if you run someone’s credit too many times it could result in a lower credit score. If your score was marginal to start with it could affect the kind of loan you can get. Make sure you are comfortable with your loan consultant. This is why we encourage you to come in for a free consultation.
Don’t Do #2. Don’t finance any expensive purchases that will add to your monthly debt.
When applying for a mortgage, please visit:-BiohackingFx.com GetCrossfitShoes.com grandkitesurfing.com Fasaicflensburg.com your income and expenses need to be at a certain ratio. By adding more debt to your existing monthly outlay, your ratios could increase to a point of being detrimental.
Don’t Do #3. Beware of Bait and Switch tactics.
If something sounds too good to be true, it usually is. Find out how long the Mortgage Company has been in business. Do they have testimonial letters from past clients? Do they have complaints filed against them? Do the questions you are being asked about your purchase give you confidence that a high level of professionalism exists? Is the loan officer respectful and polite? Does your “gut feeling” freely tell you to proceed?