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The “What You Need” Blog
So you’re looking to buy a new home? The process looks daunting, especially if you’re a first time home buyer! Don’t worry – The Wise Team is here to help. Here’s a quick list of things you should have prepared before approaching a lender. Feel free to continue house hunting and reach out to a realtor, but you’ll definitely want these files in order before you really jump into the homebuying process.
The Essentials:
- Bank Statements (All Bank Accounts)
- W-2’s for the past 2 years.
- 1 Month of Pay Stubs
- Brokerage & Retirements Statements (Previous Quarter or last 2 months)
- Home Insurance Agent
- Student Loan Statement
If you’re self employed you’ll also want to include:
- Previous 2 years of Tax Statements
- Business Bank Account Statements
- Year-To-Date Profit & Loss Statement
These documents hold all the information a loan officer needs in order to approve your home loan. There are, of course, other factors that play into the approval process: income and credit mostly. Make sure to focus on improving your credit score: pay all debts on time, pay off credit cards if possible, and hold less than 30% of your available credit in debts.
There are two ways of approaching home buying at this point. The first is to hand over your application to the loan officer so s/he can approve a loan amount. This allows you to search for homes within your price limit – and with how the Real Estate Market is looking in 2021, you’ll want to know what price range to hunt in. The other way is to assume the mortgage payments you’d like to make, and search for homes in that price range. A realtor can help with that. This way you won’t overextend yourself just because you got approved for more than you imagined.
No matter where you are in the process, it’s important to keep an eye on your finances and credit. If you’re thinking about buying a home in the near future, get in touch with us at The Wise Team. We’re keeping an eye on this competitive market and finding gems in the hustle that is the 2021. Reach out today: 720-442-0899
