As you prepare to buy a house, here are some things that can help you be ready for when you find the perfect home.

Preparing for "Shopping a Loan"

Prior to shopping for a loan, it is critical to prepare a folder with all the documentation a lender will need to process a loan. The following list is a guideline for the most requested documents. Keep in mind - depending on your current status (employed, self- employed, or retired), additional documentation may be needed.

  • Financial statements
  • Bank accounts
  • Investments
  • Credit cards
  • Auto loans
  • Recent pay stubs
  • Tax returns for two most recent years
  • Copies of leases for investment properties
  • 401K statements, life insurance, stocks, bonds, and mutual account information.
Sourcing a Loan (Calculator)

Do you know your FICO/Credit Score?

As with many things you purchase on time, your credit score determines the kind of interest rates you will be offered. Don’t be caught off guard. On a mortgage loan of 15-30 or even 40 years, interest paid on the loan adds up.  All adults are entitled to a free credit report from each of the 3 reporting agencies: Equifax, Experian & Trans Union. Obtain a current report and review that all the information is current and accurate. There are mistakes that take place that can affect your overall score, costing you hard earned money. Take the time to address any mistakes and keep the documentation in your financial folder.

Do you know your FICO Score?

Not the time for major changes or purchases

Any large purchase or change in employment status can affect your loan qualification. While in the market for buying a home, you will want to avoid any major purchases and changes to employment. Mortgage lenders need to be secure in your financial stability. Although it can be tempting, don’t shop for that new living room set for your new home, or buy a new car to place in the garage. Any large withdrawals or even deposits to your bank accounts will trigger a red flag to the loan underwriter. Mortgage lenders also pull a final credit report prior to funding a loan.

Making an Offer on a Home

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