As with so many things in life, getting started in buying a home can be a bit of a mystery. The moment you mention you are thinking about buying a home, there is no shortage of people offering advice. From family to friends to co-workers, everyone shares their experiences with you. As well-intentioned as this is, it is likely out-dated by the time you are looking. The fact is things change over time. How much of a down payment you need, what kind of income, where/what are the best deals; something changes, usually at least once a year.
First things first
To be able to properly use your time and effort, start by setting a budget. The amount you currently pay in rent is not a good budget for your monthly payment on your mortgage. Take the time to apply for a loan. You can easily do this on-line (https://FakriZubek.zipforhome.com) by answering a few questions and uploading some documentation. You will need the two most recent:
- Pay-stubs
- W-2s
- Tax Returns
- Bank Statements
- Copy of your driver’s licence clearly showing your face
Once you’ve submitted all of this, you can expect to hear from your lender relatively quickly. You will find out the maximum loan amount, how much your down payment needs to be and most important to getting started with a Realtor, a pre-qualification/pre-approval letter. This letter is shared with the seller when you make an offer.
Next
Now you narrow down your visits to Open Houses/on-line tours within your budget. It’s fun to see beautiful homes, and then it’s frustrating once you find out you can’t possibly afford such a home. With a verified budget, you can avoid this frustration. Once you find the right home for you, the realtor will help you with making an offer and getting through the actual purchase process (known as Escrow).
Last but not least
It can be weeks and months before you find the right home and agree on a price with the seller. Thus your lender will ask for updated pay-stubs and bank statements. If appropriate, they may even require the latest tax returns and W-2s and anything else that may have changed since your first applied for a loan (for example, your employer or your position/title at work).
Working closely with your lender and your realtor will help in getting started on the right foot. Whether self-employed, lacking the down-payment or other concerns, discuss it with your lender. Contact me (760 622 5087 or [email protected]) as I offer every kind of home loan and certainly have a solution for you. I welcome your questions.
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