Buying your first home can be an exciting but overwhelming experience. The right bank and agent can take most of the hassle off of your shoulders. Make sure you’re checking these items off of your list to allow for a smooth home buying journey – without breaking the bank.
Check Your Credit Score
Making sure your credit score is high and on the rise will allow you the opportunity for better rates! Look for any issues with your report and contact the credit bureau to have them fixed.
Gather Your Documentation
Have your documents in order when coming to the bank to discuss a pre-approval letter and loan. Contact us in advance to find out which documents we require. To help you get started, you should plan to have the following documents when applying:
- Income and employment verification – Last two years’ tax returns, W-2s, 1099s, and your last few pay stubs
- Identification – A primary form of photo ID (driver’s license or passport), and a secondary form of ID (Social Security card, student ID, insurance card, etc.)
- Financial condition – Bank and brokerage account statements including retirement accounts, proof of funds to close, or a gift letter (if your down payment is coming from a gift)
Secure Pre-approval
A pre-approval letter shows a buyer that you are serious and have the funds to afford the home. This also lets you know how much house you can afford, so you don’t start hunting for houses that are out of your budget.
Decide On Your Max
Even if you can afford a certain amount, not spending it all may be wise. Scale back a little and decide on the price you’re willing to spend. Hold yourself accountable to not pass that limit.
Think Of Additional Expenses
Repairs, maintenance, monthly bills, moving costs, and closing costs will all factor into your budget. Know how much income you earn each month and subtract all of these costs; then subtract your daily expenses (such as gas and groceries). This will show you how much you will actually have to put toward your mortgage payments. Deciding on your max budget will help you know your purchasing capacity and live more comfortably.
If you’re looking for a great rate on your mortgage, contact us or stop by the bank. We will be happy to help you along the path to buying your dream home!
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