TIPS FOR BUYERS
- Get Prequalified with a lender. Having a prequalification letter from a lender , in most cases , is something sellers will request be submitted with any offers made. Many times sellers will not consider offers without a prequalification letter. Therefore, going through the process of getting pre qualified will save you time and allow you to be ready to make an offer on a house and not miss the opportunity due to to delays. Generally lenders will require the following information:
- Pay stubs from the past 30 days showing your year-to-date income
- Two years of federal tax returns
- Two years of W2 forms from your employer
- 60 days or a quarterly statement of all of your asset accounts, which include your checking and savings, as well as any investment accounts such as CDs, IRAs, and other stocks or bonds
- Any other current real estate holdings
- Residential history for the past two years, including landlord contact information if you rented
** A. Morris Realty will be happy to give you some direction as far as lenders to best serve your needs **
- Drive around and get a feel for the areas you are most interested in
- Begin to eliminate as much debt as possible. This will help your debt-to-income ratio which is one of the major things lenders look at when determining your qualifications for a home loan.
- Give thought as to how much additional debt you are comfortable taking on every month to pay a mortgage. Although lenders will let you know the maximum home price you qualify for, it is up to you to decide how much you actually want to borrow
- Realize that even though you can borrow money to purchase a home, there are some additional out of pocket monies necessary such as down payments and closing costs. * There are lender programs available that will sometimes assist First Time Homebuyers and Veterans with these costs.*
- Make no major debts ( ex. financing a car, furniture, large appliances etc. ) before purchasing a home as this may effect your credit
- Never sign any document until you know and understand what you are signing.
- Work with a Realtor , whether it be A. Morris Realty or some other reputable agency. As your Buyers Agent, you receive professional services at no cost to you as our services are paid by the seller. Basically, you get an agent looking out for your interests that will save you money and get you the best deal for FREE.