Home Loans - Where to Start

First is to find out how much you qualify for……  Talk with friends and family to see if they will recommend a Loan Professional they have worked with during their home buying experience.

There different types of loans that the Loan Officer will go over with you:  FHA loans that require a minimum of 3.5% down and all of that can come from a gift from a family member, VA loans if you are a Vet you can qualify up to $417K with 0% down and no mortgage insurance, and other options.  

I know this is all foreign language for you but that is where talking with a Loan Professional who is knowledge in today’s market is so important.

Things the Loan Officer will want to see are:

• 2007/2008 tax returns all schedules with W2s

• 1 months pay stubs

• 2 months bank statements for all the accounts the down payment and closing costs will come from

• copy of your driver’s license

• need to pull your credit to see your debt and credit score

• employment history

• Other items as you and your Loan Officer talk about your circumstances. 

The Loan Officer needs to be able to see how much you make, what your debt is, than adding in your new possible house payment what your debt with respect to your income looks like.  If you add in all your currently monthly payments and than a new house payment what % of that is your income and how does that apply to bank guidelines.

FIRST THING…. FIND OUT HOW MUCH YOU CAN BUY.  Getting pre-approved is the first step.