Thinking of buying a home? Will you need financing for the home? Below is a brief description of the most important points for preparing yourself for this important event:
1. Don’t make any assumptions regarding your ability to get financing. The best course of action is to talk with a lender who has experience in all types of loans. Veterans Administration loans, FHA loans, first time buyer loans, conventional loans, jumbo loans, fixed rate loans, adjustable rate loans are some of the loan types available in the market. Be sure to work with someone who has experience. The loan landscape has changed dramatically over the years and it is important to work with someone who is familiar with options and how to get you through the process.
2. Think in terms of your own current financial situation for preparation. Unlike many short term loan options with banks, long term mortgage lenders require very specific information for qualifying you for a home loan. They require more than a written financial statement. They want copies of complete 2 years’ tax returns, all schedules , W-2’s and 1099’s; current paystubs; addresses of where you have lived for the past two years; specific information of where you have worked for the past 2 years; enough personal information to run your credit; copies of bank statements, typically checking and savings, for most recent 60 days. So start thinking in terms of saving this kind of information or knowing where to get it quickly.
3. Don’t be afraid to be honest and forthcoming with any information. This can be uncomfortable. A good lender will ask a lot of questions that seem very personal. They are. But in order for no surprises to pop up during your prequalification process it is best to let the lender know as much as you can about the following: your credit (good or bad), your assets (source), and your job (history and fluctuations). The good lender is there to help you, not judge you. The good lender should act as an advisor to educate you and give you enough information to make decisions. The only way a lender can do that is to have the facts about your situation up front. Based on the sophistication of the current lending evaluation process there are many ways in which the information will come to light during the process and most likely will come to light. So openness at the beginning will save you a lot of time. And beware of lenders who are too quick to evaluate without doing a thorough job.
Buying a home is one of the most important decisions we make as consumers. And one that we don’t experience frequently. Trust and expertise are the most important ingredients that you want to find in a lender. When you write a contract you want to be confident that the lender will assist you in getting to the closing on time. And that the lender will have educated you as to what options are available to you. Education will lead you to the point where you can make the best decision on what is the right loan for you.
I will work closely with your Loan Originator or Loan Officer throughout the entire loan process, making sure that your transaction is a smooth one. The very best way to find out more about the mortgage process is to start talking to a lender to get prequalified and have all of your questions answered. I know several reliable lenders I can refer you to!