Preparing to Buy

You’ve decided the time is right to buy your home. Now, before we start searching for your new home there are few things to prepare.

Financial Documents:

Securing financing for your new home will need to be done early in the home buying process. Working with a lender and getting pre-approved will help you narrow your search and speed up the process of making an offer.

To make this process go smoothly, start collecting the following information:

• Financial Statements
• Bank Account Statements
• Credit Card Statements
• Outstanding Loan Statements
• Recent Pay Stubs
• Tax Returns for Previous Two Years
• 401K and Other Investment Statements
• Financial Documents Related to Other Investment Properties

What to Do

• Check Your Credit Score: This will be a key factor when determining the interest rate on your mortgage. If it is low, steps can be taken to increase your score.
• Minimize Debt: Outstanding debt plays a large role in determining your approved loan amount and interest rate. Work with your loan officer to determine how much cash you will need on hand for the purchase.
• Shop Around: Not all mortgages are created equal. Get quotes from at least 3 loan officers before choosing the option that’s best for you.

What to Avoid

• Making Large Purchases: Large purchases can reduce your available cash and potentially increase your debt.
• Taking on New Debt: If it can be avoided, don’t open new lines of credit or increase your debt level. Your debt-to-income ratio is very important in the home buying process.
• Change Your Job or Career: Recent or frequent changes to your employment status or income raises your risk level and can impact your interest rate. When looking to make a loan, lenders prefer steady, gainful employment.