Tips for Buyers

Buying a home is a thrilling journey, and finding the right mortgage lender is an essential step to start you off on the right foot. Before arranging a home tour, it’s a good idea to get prequalified for a mortgage. You don’t need to handle this alone—let us support you through the process.

Here’s a checklist to guide you as you prepare for this process and select the lender that’s right for you:

1. Gather Personal Documents: Collect two forms of government ID, your Social Security number, any relevant divorce documents, and proof of other property ownership if applicable.

2. Review Your Credit Report: Request a free credit report and look it over for any errors to dispute. Be cautious not to open new accounts or make changes to existing ones to protect your credit score during the mortgage process.

3. Have Tax Returns Ready: You may need tax returns from the previous year, and in some cases, from the past two years.

4. Organize Income Documentation: Gather W2s, recent pay stubs, 1099s, or a profit-and-loss statement if you’re self-employed. Also, prepare documentation for any other income sources, such as Social Security or child support.

5. Provide Proof of Assets: Compile recent bank statements and balances for retirement accounts, IRAs, 401(k)s, and any investments in stocks.

6. Summarize Debts: List your debts, including monthly payments for credit cards, student loans, car loans, and other obligations.

7. Explain Financial Issues if Needed: If you have a history of bankruptcy or other financial challenges, you may need to provide an explanation.

8. Down Payment and Closing Costs: Ensure these funds are readily available. If part of the funds were a gift, a letter may be needed to confirm they’re not a loan.

9. Provide Rental Payment Proof: If you’ve been renting, you’ll need to show payment history for the past year using canceled checks or receipts.

10. Mortgage Pre-Approval: Take time to compare lenders and loan offers to find the most favorable terms and rates. Purchasing a home is a significant investment, so it’s wise to shop around for the best deal.

Are you ready to start your mortgage application? Contact us, and we’ll be happy to walk you through each step, helping you find a lender you can rely on!