The Right Steps To Buying Your Home

Straight Talk:

OK, so now you’re ready to take the big plunge to being a home owner. Many things can stand in your way and make your trip a Rocky Road. To smooth your Trip, we’ve put together this action plan to help your home purchase go as smoothly as possible. Follow it, and the odds are in your favor to have a happy home buying experience. Don’t follow it, and you take the risk at wishing you had a Land Rover® to smooth the ride.

Each of these step is addressed in some way throughout this section including reading material and documents.

• Put together an action plan!
• Begin saving and operating on a budget. No more eating out or purchasing unnecessary items until you have closed on your new home. Your spending must stop now.
• Do not take on or apply for any new debt until you have closed on your new home. If you need a new car, that new payment could be the difference between driving your home and owning a home!
• Get copies of ALL THREE of your credit reports.
• Address your credit issues before starting the process.
• After reviewing your credit, identify and understand the mortgage products your credit quality fits.
• Make a list of programs you “can live with” and the rate of interest/mortgage payment you would be comfortable with for that program type.
• Quote title companies, appraisers, insurance agents and home inspection services.
• Gather your loan documents. This includes bank statements, completed and signed hand written mortgage application etc. Refer to the loan documents in this section for the things you need.
• Identify the type of down payment assistance program you need, if any, and prepare the application package for the program. These packages are straight forward and you will know whether you qualify or not by the basic income guidelines.
• Take a first time home buyer class – Regardless of whether you are using down payment money or not. Every County offers them. Get your name on the list, get scheduled and get educated.
• Pick a Lender, Broker, Banker and get a PRE-APPROVAL with conditions based upon your shopping. Pre-qualifications are worthless. Pre-approvals without an underwriter review are worthless. Make sure an underwriter has reviewed your file before moving forward. The underwriter will always clue the loan originator of any “unusual” things they want to see addressed.

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