If you are not sure where to begin when purchasing a home I have some guidelines that may assist you. Also, do not assume that if you have no credit, bad credit or a bankruptcy that you cannot qualify for a home. The process of prequalification will definitively give you the options that are available to you. If you have any questions or concerns please call me at (505) 688-9774.
Step 1: Prepare Your Finances
First you will need to collect all of the information that the lender will need to begin the prequalification process. These items include, but are not limited to:
Social security number(s)
Recent pay stubs that detail your earnings
Checking/savings account statements for the past 6 months
If applicable, proof of additional assets (e.g. stocks, bonds, etc.)
List of existing loans (e.g. auto, student, etc.)
Point of contact to verify your employment
Last two years of income tax returns
List of credit card accounts that display monthly payments due
Legal documents for cases that influence your credit or income such as bankruptcies and judgments.
Keep in mind that you will only need to gather information from the above list that pertains to you and your situation. The lender will request any other information that they need
Step 2: Meet With a Lender
It is a good time saving measure to know how much you will be able to spend on a home prior to searching for one. In order to do so you will need to acquire all of the information from step 1 so that you are prepared when you meet with a lender. Remember, not all lenders have the same standards for mortgage loan qualification regarding credit scores and other criteria. I can connect you with a reputable lender that will fit your needs based off of your particular situation. Contact me by phone at (505) 688-9774 or by email at sheniq@sheniq.com
Step 3: Save Money
In order to buy a home you must consider the costs such as earnest money; having $1,000 or a specified amount available (in addition to your 3-5% down payment) when necessary during the home buying process is essential to obtaining your goal of home ownership.
Step 4: Start Home Shopping
Now that you are prequalified and have been provided with a price range where you can begin looking for a home we can go shopping for the best deal on the property that best fits your needs and desires. In an effort to save you time I can preview homes in person prior to showing them to you. This way you do not have to waste your time and energy on a home that does not meet your criteria.
Step 5: The Closing process
After an offer is accepted on the home that best fits you, the closing process begins which includes appraisals, inspections, and other procedures. Please keep in mind that though you may be on the final step of purchasing a property, you SHOULD NOT use any of the money that you have saved thus far from step 3 to purchase electronics, furniture, cars, etc. Towards the end of the closing process a final check on funds available will be performed in addition to another review of your credit. Any changes could result in not qualifying for the loan that will finance the purchase of your home. Once you have the keys in hand, you may do as you wish in regards to your savings without fear of losing your loan.