Step 2. Preapproval
Knowing The Price Range
Before looking at houses, it is essential to know
the price range of the homes we will be looking
at. In order
to determine a price range you need to get pre-approved
from a lender. Having a pre-approval letter will also help when
you are ready to negotiate for your price.
To help you in your
pre-approval process, we have tried to give you
some of the information that you will need. Most lenders will
need the following items for your application:
- Two most recent pay stubs
- W-2s for last 2 years (or if self-employed, 1040s for 2 years)
- Federal tax returns for the last 2 years
- Bank statements for the last two months
- Long-term debt information (credit cards, child support,
auto loans, installment debt, etc.)
- proof of funds for your down payment.
You will really impress your loan officer if you have all these things ready to go.
Shopping For Your Mortgage
Shopping for your mortgage is as important as shopping for your home. Please take the time to speak with at least one loan officer. Speaking with two or more will give you different perspectives on the loan process.
This website should answer some of your questions
and give you some questions to ask your loan
officer: http://www.mtgprofessor.com
We would also be happy to tell you some of the lenders we have worked with and with whom we feel comfortable.
The loan officer will give you a Good
Faith Estimate of the closing costs involved with the financing. There are recurring
costs that you pay that are included in the monthly payment,
such as homeowner's insurance and property taxes (the monthly payment consists of principal, interest, taxes and insurance and is referred to as PITI).
It is very important that you receive a Good Faith Estimate.
This is your way of seeing all the costs that the lender will
charge. Once you have more than one Good Faith Estimate, you
can compare 'apples to apples'. If your lender does not give you a Good Faith Estimate, it is essential that you ask for one.
Talking With A Loan Officer
Here are a number of other links that we think you will find useful when talking with a loan officer.
Credit Score. One of the most important parts of getting
a good rate is to have a good credit score. To
learn more about your credit, and how to improve
your standing, please visit www.mtg-net.com/sfaq/faq/fico.htm.
Credit scores are also called fico scores. If you do not have a good credit score, there are a number of ways that you can bring your credit up. More programs are available now that can get you financed with bad credit. Sometimes they can even get you a loan with no money down. Call
us to talk more about this.
Useful Information
If you are trying to compare the cost of living for your current city, please visit www.bankrate.com/brm/movecalc.asp. This website will help you determine a range of relocation factors from home prices to medical expenses.
There are a number of tax advantages available for most American homeowners, but to benefit, you have to understand them, and report them properly to IRS. See Realty Times article, "It's Tax Time Again!"
Trying to figure out whether to refinance? This website will guide you through the maze: http://www.bankrate.com/brm/calc_vml/refi/refi.asp
To help yourself determine monthly payments from your interest rate, you will enjoy using this website: http://www.calculators4mortgages.com/
We hope you find these links as helpful as we have!
To skip ahead or go back to a previous step, please use the links below:
Step 1. The Initial
Consultation | Step
2. Preapproval | Step
3. Searching for the Home
Step 4. Purchasing the
Home | Step 5.
Closing on the Home | Step
6. After the Closing
|
