Know before you Go “Buy”
February 26th, 2014 at 2:58 pm by Gary Mawson Jr.
One of the most important thing to do prior to shopping for a home is to know how much you can afford to borrow from your bank or local lender. It is as simple as calling the mortgage lender and going over a few questions to get a preliminary idea of how much money you can actually borrow.
Things that you will need to get started
- Last 2 years of tax returns!
- 2 months of bank statements
- 1 month of paystubs
These are the basics that you will need to get started. If you are self employed or get 1099 income than there are going to be other things that you will in fact need to get to the mortgage lender. Know before you go though! If you get these simple documents together that most people have handy or can get within a matter of a few minutes at the computer can save you a lot of time while searching for a property. They can also give you helpful tips on what you need to pay down or do so that you can raise that number if you need to afford a bit more.
You can get your pre-approval from a lot of different places. Most people start at their bank, but there are 100’s of lenders out there that can help you obtain the same goal which is to purchase a home. If you are already working with a realtor you can ask them for a referral, they often work with several lenders that they know and trust that will get the job done quickly and effectively. Another great referral source is your accountant or even financial planner. These are all people who are out to help you achieve your goals and can assist in guiding you in the right direction. Talking to your accountant and financial planner are often good too so that you can plan for interest payments for deductions or stay liquid in the event something major happens in your life.
So it is important to know before you go buy a home what you can qualify for so that you know that it is a realistic dream to buy the home that you want in the area that you want!