Before Visiting a Mortgage Lender
Even though buying your first home may be incredibly exciting, there are some things you should do before considering visiting any mortgage lender. For many first time home buyers, this will be the largest investment of their life. But there is no disputing the fact that buying a home is a sometimes an emotional process because of the amount of time and paperwork that is normal with any home purchase.
Even if you are just venturing out to look at homes or if you already know what you prefer to buy, purchasing a home requires some research and effort. Any time that you spend in the preparation is worth the effort because it will help both the lending and closing processes proceed smoothly.
Before you ever contact a mortgage lender, you need to go ahead and get a copy of your credit report. After you get a copy, double-check it for any errors or potential problems. If you discover an error, you need to contact the creditor to make sure that erroneous items get fixed on your report. Even if you have a low credit score, it does not mean that you cannot get a home loan, but you may have to pay a higher interest rate.
Organize your Efforts
After you have determined which lender you would like to deal with as well as the mortgage rates you anticipate getting, your lender will request a Verification of Employment form. What you can do is ask your human resources department to keep an eye out for this form. Then you can rest assured that your very important document is not simply buried in in a stack of mail or on top of a fax machine. If human resources is expecting the document, they are much more likely to complete it quickly.
You will also need a minimum of one month’s worth of pay stubs or payment records from your present employer. Make copies of these and retain the originals. Find the most recent W2 forms that your employer sent you for the last two calendar years. Your lender requires these wage and tax statements from you as well as from your spouse or other person with whom you are applying for the mortgage. Find your federal tax returns and make copies of the documents. Use the two most recent years of tax returns if you have not yet filed your return for the the just-past calendar year.
Gather All Necessary Documents
There are more pieces of paperwork that your lender is going to need. Most lenders want at least three months worth of checking or savings account statements. Also bring copies of any assets like retirement accounts, stocks, bonds, mutual funds and so forth. Your lender is also going to have to confirm your identity, so that means that a copy of your driver’s license or passport is also needed.
The final thing that you need to do is to make a financial inventory. Calculate how much debt you owe and make a list of each account. This includes all loans, other real estate purchases and credit cards. Your lender will ask for copies of statements of all of these accounts.
You will also want to determine how much money you will have remaining after you have paid the down payment and the remaining closing costs. A copy of your social security card is also required. Gathering all of this paperwork really is the difficult part, so being proactive in gathering the necessary documents is of great benefit.
Home Loans for New Home Buyers – Video
Tips for Choosing the Right Mortgage Lender
A decision that is almost as important as which house to buy is which mortgage lender to use. It is important that the entire transaction is handled efficiently and professionally.
How Much Do I Need for a Mortgage Loan Deposit?
There are a number of very important decisions to make when buying a home, and with each comes a variety of options. When deciding how large of a down payment to make, there are a number of different factors that must be taken into account.
The World’s Real Estate Crisis
It’s been blatantly obvious for some time now that our credit-fueled prosperity party has now come to a rather abrupt end.
The New and Improved First Time Home Buyer Tax Credit
Basically the tax credit for first-time home buyers went from $7500 to $8000, with the difference that the tax credit now does not have to be repaid at all. Before, it was to be repaid over a 15 year period.
Once you get a mortgage quote you like shop it around to other potential mortgage lenders. This increases your odds dramatically of that lender meeting or beating the quote you showed them.