So, you want to buy a new home? Planning for that now, taking steps to simplify your finances, and gathering the documents you need in advance will make your first visit with a loan officer easier.
Credit, Debt and Your Good Name
Early in the process, pay down debt. In particular, eliminate small remaining balances and close out any lines of credit you don’t use, want or need. If you have too much available credit, it may hurt your ability to secure a mortgage. Order a copy of your credit report from all three reporting agencies to ensure that they are correct well before you meet with your bank or financial institution. If there are any corrections that need to be made to your credit reports, you should make them before applying for a mortgage. It’s a good idea to check your credit regularly, at least once a year, for monitoring purposes.
Prepare a Budget
Although the typical guideline is that a mortgage payment should be 28% of your income for a conventional loan with a total monthly debt load (including a mortgage) not to exceed 36%. FHA loans suggest 29% for the mortgage with a total debt load of 41%. Your guidelines may vary based on your credit rating. Talk with your loan officer to determine your own situation. A good solid budget will help you to determine where you are now and will help forecast what type of mortgage payment you will be able to make comfortably. A new house should make your life more enjoyable and a proven budget will help ensure that your purchase does not increase your stress level.
Before meeting with your banker or loan officer, you will need to collect several documents to expedite the pre-qualification process, the pre-approval process and the final loan approval. You will need the following documents with you for your first meeting:
W-2 and income tax returns for the previous two years (more may be requested if you are self-employed or have more than 25% of your income from commissions)
Copies of pay stubs for the last 30-days, including a year-to-date figure (and spouse’s paystubs if you are married)
Financial records related to child support (if you are paying or if you are receiving payments)
Financial records of alimony (whether you are paying or receiving)
Bank Statements on all accounts (including investments) for the most recent monthly or quarterly reporting period for you and anyone purchasing the house with you
Name and address of your landlord(s) for the past two years if you are a renter
Clear copy of the front and back of drivers license, social security card, and resident card for all parties purchasing the house
FREE AUTOMATED EMAIL UPDATES
Sign in to take advantage of all this site has to offer. Save your favorite listings and searches – also receive email updates when listings you like come on the market for free! *Contact Information is NOT Shared*
Copyright 2018 Georgia MLS. All rights reserved. Information deemed reliable but is not guaranteed. The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity Program of Georgia MLS. Real estate listings held by brokerage firms other than RE/MAX Prestige are marked with the Broker Reciprocity logo and detailed information about them includes the name of the listing broker. Information provided is for consumer\'s personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. RE/MAX Prestige does not display the entire MLS database on this website. The listings of some
real estate brokerage firms have been excluded. This site will be
monitored for \'scraping\' and any use of search facilities of data on the site other than by a consumer looking to purchase real estate, is prohibited. Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. Information last updated on 2018-06-22.