So you have been looking online at homes. You end up seeing one that is everything that you have been wanting. You call a Realtor to show you the home. You go and see the home and you fall in love. You want to submit an offer, then it hits you…THIS HOME IS OUT OF YOUR PRICE RANGE! Unfortunately, this tends to happen when people start the home buying process. Everyone is eager to start looking at homes, but they fail to get their ducks in a row and line up their financing before they start looking. It is a lose/lose situation when you start the home search before you get your financing in line, and I’ll tell you why.
One of the most important steps of buying a home is making sure you are qualified to purchase a home. The last thing that you want to happen is to fall in love with a home then come to find out that you can’t afford it, or there is something preventing you from buying a home in general. There are many benefits to getting pre-qualified or pre-approved for a home. When you are ready to submit an offer, the sellers will know that you have already done the work beforehand to obtain financing and that you are a qualified buyer. This can also help you with the negotiation when buying a property. There are 2 main people that you need to become comfortable with and trust during this process, a Realtor and a loan officer. Ultimately you want to work with a great, and I emphasize great, Realtor that has local knowledge and can negotiate a fair price for you. Another must when buying a home is make sure you are working with a loan officer that knows their stuff. Sure, any bank has a loan officer that is getting paid a tiny salary, sits behind a desk all day and will tell you exactly what you want to hear. That’s easy! Make sure you are dealing with a professional who knows the ins and outs of the mortgage business in order to find you and your family the best program possible. Often times, what you want to hear is a lot different than what you need to know, so work with someone who will guide along the right path the first time around.
Here are some of the items that you should consider gathering together when you want to start the home buying process, and believe me, your loan officer will LOVE YOU if you are well prepared. Again, this is just some brief information and each situation can be different, but if you have the majority of this ready to go, you’ll be in great shape.
- Identification ( State IDs or Driver’s License or Passport)
- Most recent pay stubs for the past 30 days
- Most recent 2 years of Federal tax returns and W2s or 1099s (if you’re self-employed, let them know because there is additional requirements that will be needed)
- Recent bank statements for the past 2 months
- Homeowner’s insurance agent name and number
- Addresses of any additional properties that you own
- **If applicable** Divorce decree/Bankruptcy discharge paperwork/Child support order
All of this is information that is extremely useful because it will help your loan officer better comprehend your current financial position and see if you are eligible to purchase a home. Also, let the loan officer know how much you are comfortable with spending. I hear way too often that a loan officer will issue a pre-qualification for a set price and it’s a price way higher than what the buyers want to spend. The way I look at it is that I want to put people in a mortgage that is comfortable for them, so it doesn’t matter if you qualify for a $400,000 home if you are only comfortable spending $250,000. So make sure you are prepared with how much you are comfortable spending for the down payment and for your monthly mortgage payment.
Now to the meat and potatoes of my blog! If you want a no-nonsense, straight to the point, knowledgeable loan officer with access to some of the best programs in the industry, then you need to look no further. OK, well maybe a little bit further. First, you need to contact me and I will give you a FREE home financing analysis to see if I can get you qualified to make that first step. Secondly, I work with some of the area’s top Realtors and I can put you in contact with them to help you find your dream home. Next, we close your loan and you move into your home. Finally, because both the Realtor and myself were so good at getting you the perfect home, the perfect loan and amazing service all you need to do is refer your friends, family, co-workers, heck even strangers, over to us so that we can help make their dreams come true as well.
Now I want to offer you all something else that is completely FREE! You can download my free mobile app for your cellphone. It has a ton of resources at the palm of your hands. You can search homes, local schools, taxes, mortgage payments, rates and a bunch of other cool stuff absolutely FREE, all you have to do is CLICK HERE.
Now that you’re a little more prepared for your home search, leave me some feedback below on what you want me to blog about next. Be on the lookout every Monday for a new blog post, and thanks for reading!