Steps To Take.
Purchasing your first home is fairly simple. We will outline some of the steps as well as provide videos that offer more details on the traditional process. Depending on your lender you may need more or less of the info provided below.
1.What You Should Know
A. You should know what your credit score is and the lowest score lenders will use to finance you.
B. You should have an idea of the maximum amount you want to pay for a mortgage that includes principal, interest, taxes, and insurance. (PITI)
C. You should have 20% down for a traditional loan or know the home buying assistance and grant programs in your area that require less down.
D. You should know your debt to income ratio (DTI) as this and credit will affect your interest rate.
E. You should get pre-qualified before you start looking to purchase your new home.
2. What Your Lender Needs
A. Proof Of Employment – At least 2 years on a job or in the same industry.
B. Last 30 days of paystubs and 3 months bank statements from all accounts.
B1. Self Employed – 12 to 24 months bank statements
C. Last two years tax returns. (some also require last two years W2’s)
D. Rental Verification for the last two years. (They will contact rental agency)
E. Drivers License or proof of identification.
F. Any proof of other income received that will be used in qualification.
3. Fees & Costs needed after an offer approved and before closing.
A. Down Payment
B. Inspection Fee
C. Appraisal Fee
D. Attorney Fee
E. Pre-Paids: property taxes, homeowners insurance, and interest
Depending on the type of deal you are structuring there may be more or less involved. If you are interested in learning more about real estate to get the best savings for your new home purchase, get lifetime FREE access to our channel.
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