The first things you need to ask yourself before buying a home is are you going to need a mortgage. If you are like most the answer will be yes. Even if you have cash, why use your resources when you can borrow someone else’s money since the interest rates are low. In the days when interest rate were high, it did make sense to pay as much in cash as possible; however, it now makes sense to save your cash for other investments and or to acquire other materialistic things.

Second, how much Home can you afford? This can be determined on an easy to follow home-buying worksheet. If you would like one, you may request for one by e-mailing me with your name, address & phone number at no cost and/or obligation. Or you may call your mortgage broker or loan officer to help you determine the answer to this second question.
You will have good negotiating power when you are pre-approved for a mortgage. There is a difference between pre-approved vs. pre-qualified.

Pre-approval uses basic information as well as electronic credit reporting. It is a true mortgage commitment. Which means a commitment to financing your home and an indication of the total mortgage amount available to you? Many mortgage lenders can help you through the pre-approval process. In most cases, there is no charge for this service.

Prequalification, on the other hand is not a full mortgage approval, but an estimate of what you can afford. When you pre-qualify for a mortgage, the lender collects basic information regarding your income, monthly debts, credit history and assets, and then uses this information to calculate an estimated mortgage amount.

Documents needed to apply for a mortgage are as follows:

1.Two most recent pay stubs or 6 months of Profit & Loss Statement if self-employed
2.Verification of any other income, i.e. stocks, bonds, retirement, disability, other support
3.Federal tax returns for the last two years
4.Last two months’ bank statements
5.Long-term debt information (credit cards, child support, auto loans, installment debt, etc.)

If you need to repair past credit problems, some lenders will work with you to find a credit solution.
Some situations that could put someone in this situation could be:

1.You were a co-signer on a loan that wasn’t paid on time
2.You allowed someone else to use your credit cards
3.You may have thought your spouse paid a bill
4.You thought your insurance company was going to handle the payment
5.You are divorced but your former spouse had credit problems

Some helpful hints for your credit report are:

1.Never go over 90 days past due on any accounts
2.Keep your credit card debt below 50% of your monthly obligations
3.If paying bills after the due date, always pay within the grace period

Once you have this step resolved, you are ready to actively look at homes available on the market.

We are here to help you through this first step. We have knowledge of the many different financing programs available and we can guide you which one is suitable to your specific needs.