Are your considering buying a home after the first of the year? With interest rates at historic lows, many home bargains on the market, and an extended and expanded tax credit, many of us are. So, add to your "I'll eat better and exercise more" type of new year's resolutions with some to make your home purchase easier and more successful financially.
- Get your documents in order. Getting a mortgage today is a lot more detailed than many people experienced a few years ago. Whether you're self-employed or not, you'll want to have as much documentation ready as possible to prove not only your income, but major expenses as well. If you can, scan them and have digital copies ready to email or print. Tax returns, W-2s, past mortgage statements, and any other papers that show major income or expenses should be ready, as someone will be asking for them.
- Know what you can afford, and what the lenders will say you can afford. Actually, those are the same thing, but today's lenders may have a number that is lower than yours. Start with your expected interest rate, highly variable based on your credit score. A half-point increase in interest rate due to credit issues translates into a higher payment and lower amount the lender will say you can afford to pay for a home. The easiest way to get a handle on these items is to come into our office and let us get you pre-qualified. With a check of your credit scores and your income and expenses, we can tell you what lenders will be willing to loan, and the home you can afford.
- Do your research. Thoroughly investigate neighborhoods and current situations in those areas. Buying into an area with a great many foreclosures on the horizon can be an equity-killer. And, today's appraisal rules have been tightened, requiring more detail and analysis of declining markets. Getting excited over a home, making an offer and moving plans is great, but it's a real letdown if the appraisal comes in low.
Let us help you to be ready to put your new year's home purchase into high gear.
Contact Casey Moseman
for your Pre-APPROVAL