With mortgage rates so low, right now is the time to buy your new home. It really doesn’t matter whether you’re a first time home buyer, or you’ve been through the rodeo a few times, it is time to get your mortgage today. If you are a first-time home buyer, though, there are some things that you need to know about before you get started. Here’s our First Time Homebuyer Checklist to get you ready to buy in 2018!
Check Number One:
Get your finances in order.
Holy cow, this is important for everyone, but it’s MASSIVE for new home buyers. If you come to us deep in debt, with no money in the bank, and a terrible credit score, you’re not going to be happy. If you pay down your debt, save some money, and get that credit score up, you’ll get those awesome rates that we’re always talking about. Frankly, this is just good advice for everyone.
Check Number Two:
Have all of your paperwork ready
When you’re applying for a mortgage, you absolutely, positively need to have your paperwork ready to roll when you call. Think of it this way: your mortgage application is a puzzle. We just need all of the pieces to complete the picture. When you don’t bring in all of the paperwork, and I mean everything, it can delay your application.
Here’s a partial checklist of what to have handy:
- Paycheck Stubs
- Bank Documents
- Investment Documents
- Tax Documents
- Profit Statements (Only if self-employed)
- Proof of income from rental properties
- Proof that a gift is not a loan
- 12 months of canceled rent checks and bank statements
- Divorce decree
- Proof of age of children in child support is involved
- Bankruptcy discharge paperwork
Remember, this isn’t a comprehensive list. Bring in anything that shows money that you made, or debt that you’ve accrued. That’s what matters here in the paperwork. And for the love of Pete, don’t change anything on your forms. It sounds like common sense, but it’s more common than you think, and it’s fraud.
Check Number Three:
Call us before you shop
This one is a LOT easier. People call us all of the time, trying to get loans on homes that are WAY outside of their price range. I have never understood this. Would you go shopping without knowing how much money you had? No? Then why would you want to shop for a house that you may not be able to get financing for? If you call us FIRST, before you talk to realtors or agents, we can tell you EXACTLY what you’ll be able to afford on your mortgage from us. We work up your options, and give you a hard number to make an offer with.
Check Number Four:
Get that budget set
Know what you can afford monthly for a mortgage? Think again. There are tons of fees associated with owning a home that you may not have in mind. Most people roll these into the loan, but know before you go into the loan what exactly you can afford before you make that offer. If you have a mortgage that is stretching your monthly budget, look at a smaller payment. Don’t over-extend yourself just because rates are low. Make sure that you always have a buffer built into your budget before you sign up.
Those are just a few of the ways that first time homebuyers can be prepared for their very first home purchase, the biggest purchase of their lives.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, Nashville at (615) 810-8555 or Birmingham, AL at (205)721-7656. You can always apply online at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?