What do you need to know in today’s mortgage market? Here are the requirements to qualify for a mortgage today:
- down payment (at least 3% down, many buyers are putting less than 10% down these days)
- income verification and asset documentation
- independent third party appraisal (to determine the value of your new home)
- stable income
- good credit history
During the home buying process, you will talk with many different people -most often your realtor and loan officer. But you will also need to get homeowner’s insurance, maybe have an inspection. You will also have contact with your closer.
To get started, you need to make sure your credit history is good -review your credit report online before you meet with a loan officer. There are several sites that allow you to look at your report – credit karma, annual credit report, some credit cards offer a link to your report. Once you know your credit report is ok, start gathering documentation for your lender. You will need two years of w2’s and tax returns, your last two paystubs and last two months of bank statements. You may need more information if you have had a bankruptcy, foreclosure or divorce. Your lender can give you a list of things needed for your loan application.
Once you have your loan approval, you can contact your realtor and go shopping for your new home! After your purchase agreement is accepted, you will want to have an inspection done. Once that is complete, your lender will order title work and the appraisal. Your lender will also verify your income and assets, get tax transcripts along with several other items. Once everything is complete, your file will go to underwriting for final approval. After your file is cleared through underwriting, it will go to closing and a package gets sent to your title company.
It’s a simple process – kind of – sometimes it’s quick and easy, other times it seems like we ask for a million things! But in the end, you will own your new home! The more prepared you are, the easier it can be. Make sure you ask questions if you don’t understand what is going on.
The day finally comes where you get to go to closing and sign all the documents that make you a homeowner! It’s a celebration and you get your new home! Then the fun begins – you get to move!! Enjoy your new home!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
