Deciding To
Buy
Preparing
To BuyChoosing A
Real Estate
Agent Time to
Go ShoppingEscrow
Inspections &
Appraisals
Moving In
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.
