Becoming a homeowner is one dream that many American's share and here are a few suggestions to ensure that the process goes smoothly as possible.
DO- Interview real estate agents/Loan Officers to find the best professionals for your lending/home search needs. Ask/look for client testimonials to see what others had to say about working with agent.
DON'T- Trust unsolicited un-realistic loan offers through email or mail (rates as low as 3%, etc). Do your homework before responding. Usually, if it sounds too good to be true, it probably is. Working with a mortgage professional who is upfront and honest from the beginning is always better than being surprised with a higher rate at closing.
DO- Hire a real estate attorney. Read/understand any preliminary documents before you sign. (Some agents may have buyer/seller exclusivity clause that prevents you from working with other agents)
DON'T- Sign blank documents or any documents you are unclear of intent. You don't want to find out later on that you committed to a property that has roof damage and you are liable to have it fixed.
DO- Accurately report your current income. This will allow you to get pre-approved for a loan amount/mortgage payment that comfortably fits into your monthly budget.
DON'T- Overstate your income to try and get pre-approved for a higher loan amount. Once all income documents are received your loan officer will know the truth.
DO- Accurately report all debts including account's that may not be reporting to credit. New auto loan payments that may not show up on your credit yet, can make a huge difference in your allowable debt-to-income ratio's down the road.
DON'T- Add liabilities to credit after you have been pre-approved without notifying lender in advance.
DO- Source all funds you will use to purchase home. This can include bank statements, 401k/retirement account, gift funds from family, sale of goods.
DON'T- Deposit large sums of cash into your bank account without having proof of source. Non-sourced Funds need to be seasoned in bank account for 60 days before it can be used for down payment.
DO- Be up front about any previous credit problems in the past or reasons you were turned down by other lenders. This will allow for lender to clarify issues immediately and ensure loan approval goes smoothly as possible.
DON'T- Have your credited checked by multiple lenders at the same time hoping that one may overlook previous derogatory credit history. Even if you do have negative items reporting on your credit, a good, experienced mortgage professional will help you move past these obstacles and will outline the best course of action in order for you to reach your goal of homeownership.
Thinking of buying, but don't know where to start? visit buythechi.com
