Mooers Realty Maine Real Estate Blog
Getting A Pre-Approval Letter To Buy A Home, What To Bring.
Looking to buy a home? What do you need to bring to the bank, what paperwork do you round up to prepare for the bank mortgage home loan approval letter?
Well, take the hike. To speed up the bank home loan pre-approval process done before you set your sights on the house of your dreams, here is what is needed by the mortgage lender. Anything that verifies your income, spells out the short and long term debts, and a list of your assets to determine your net worth.
The lender with the money you need to buy the home can send or hand you the application form and you hit and run on your way.
But it is nice when you bring all you need to complete it to the bank. When you the buyer seeking pre-approval home loan status ready have what the numbers are on hand. The ones used to fill in the question spaces to get pre-approved for a home loan.
Local banks are great because they have a presence in the community and you are doing business with someone with a stake in the home town area economy where you live, work and play.
The service inside the bank and from all the venders provided is quicker on the turn arounds too. Because the mortgage approval center that creates the paperwork is in town, your state not in some other solar system where decisions are slow in the shuffle of documents needed for a home loan approval.
Sellers take home buyers who make offers way way more serious when that purchaser is carrying a pre-approval mortgage loan credentials in hand.
When the home buyer already knows the program the loan will be underwritten in and no credit history issues are holding him back from moving forward to buy the seller's home if the negotiations go well.
So what's specifically needed for a home loan pre-approval letter? Copy the last two year W-2 IRS forms, and if you own a business, provide the profit and loss or the 1099 IRS forms that tell the tale. Your most recent pair of yearly federal tax returns, the current paycheck stubs for any and all the places you work and a complete list of your financial obligations. These are all needed going into the process of getting ready to buy a home sweet home.
The credit card balance statements and account numbers, details about any student school loan repayments, and car loans, child support of alimony obligations and a list of your assets need to be copied too for the "loan arranger".
What do you own for savings accounts, profit sharing or IRA retirement accounts, titles to any and all vehicles and any of your investments has to be provided in the bank home loan approval process. To not just get the thumbs up approval to buy house but also to determine how much of a home loan the lender will consider based on debt ratios, credit scores and your employment history.
The bank loan programs are many in number and the best home mortgage one for you depends on your financial shape and condition of the property you end up determining is best for your housing needs.
All the contact information and addresses for your assets and liabilities is needed by your lender for verification before home loan mortgage loan approval. Providing this up front saves delay later tracking down each individual bit and piece of information your home lender needs to provide approval for your home loan mortgage request.
Run into lots of veterans who have never used their VA home loan approval eligiblity certificate to buy a home that should. Or that ought to combine the best of both programs for a home loan, like the MSHA and VA mix for one sweet house mortgage consideration.
There are home loans that are made in house at a bank with higher rates and that don't get packaged up to sell to investors using the secondary mortgage market method.
And programs like the VA that generally are not made directly through the government organization but rather through financial lenders that follow the guidelines for Uncle Sam to service the pubic citizens needing home loan financing assistance. Sit down with a local bank home loan lender to discuss your options.
What bank home loan product will work the best is helped along when the lender and real estate broker touch bases.
To discuss the limitations or either the buyer who may be a little weak and need a pickier loan program to underwrite his house loan. And to bring out into the open knowing this bank home loan route most likely taken and how it matches up with the sticks and bricks.
How long do you plan to live in the house figures into the best home loan product too. Lower closing costs with a slightly higher in house interest rate could be the best option for the home buyer that is not planning to stick around long. Knowing a relocation, a growing family requiring more house square footage all factor into when it will be time to put the place on the market and moving again has to happen.
Mr Fix It houses that are just too far gone don't fare well in the first time low or no down payment home loan program.
They may be cheap but they are hard to get a bank to finance them. Cash buyers, contractors and investors usually scoop them up because of the difficulty for financing them to first time just starting out home buyers.
A home needing too much done to it and no buyer funds for repairs, or if there is not a willing seller to correct deficiencies on board. That match up does not spell a successful home loan real estate closing. Again, can not stress it enough that it is so important to get a pre-approved home loan program letter in your hand before getting too deep into the house buying process.
My first home was a Maine State Housing first time buyer mortgage loan. Hear about the 12.25% fixed rate MSHA home loan rate at a time of 16% adjustable ones.
It's discussed in the my first home, my piece of Maine video.
The best price on the house and the lowest interest rate on the mortgage attached to it for those monthly home loan installments. Often those are the only two items a home buyer new to the game seek out. But there are other fees involved in buying a home.
Banks, credit unions, all lenders are required to get provide truth in lending good faith estimates to all home buyers.
Study, collect and shop for the best home buying package numbers that take all the financials into consideration. Your lawyer fees, property insurance premiums, everything for expenses needs scrutiny.
Apply for the best rate possible and stop renting. Save up the biggest down payment, consider bi-monthly payments, and know you can re-finance the home mortgage loan to reduce the cost of the money tied to the home loan principal pay off.
Home loan pre-approvals, have seen buyers think they were from big banks and then denied financing just before the closing.
Big online banks do this in the rush for volume lending telling everyone they are pre-approved instantly. Subject to all those conditions in the fine print contingencies roll call that take weeks, months to weigh in. The turn down letter for something missed going in happens and it hurts. Paying for an appraisal on a place you don't get to buy, wasting the seller's time with his home off the market for others to purchase is not fun for anyone.
But there are rules to the game of buying a home to follow carefully.
Let the lender lead you and don't try to do what you think will help your chances to get a loan by paying this off, refinancing that auto, etc. Unless the banker is looking over your shoulder to help make the moves to help the home buying steps for the pre-approval letter you are after and eventually the keys to the house you close on. Hopefully.
After the signature ink dries on the pre-approval home buying letter, easy does it.
Keep your nose clean and don't make any major purchases, that would impact your income to debt ratios. Don't quit your job or change employers. Here to help you in your quest for housing, any type of property listing when you are ready. And remember, for buying a home especially.
When you need lending help, don't have the cash stashed to buy a place outright. You need to pay attention to what banks, mortgage lenders require and the list is getting longer. Don't get divorced from your sweetie, keep a lid on all your personal spending, add anything you can to your savings accounts to get ready to buy a home in Maine.