How Should I Prepare Myself to Buy a Home?

If it has been a few years since you purchased a home, things have changed a bit and it pays to be aware of these changes. Since the recession and the sub-prime mortgage meltdown, banks have become more stringent in their lending standards which has an effect on people buying a home. Here are some things you can do now to prepare:

• Get a copy of your credit report – go to annualcreditreport.com and download a free report from each of the three credit agencies: Equifax, Experian, and TransUnion. Review and make sure everything is accurate. If there are discrepancies, get them cleaned up.
• Determine your down payment source – will you be using proceeds from your current home for your down payment? A savings account? Borrowing money from a family member? Receiving a gift from a family member? Different paperwork is involved with each which your lender would be happy to go over with you.
• Meet with a lender -Questions to ask your lender (taken from our buyer package that you can access on our website-wesellseattlehomes.com:)

What are the most popular mortgage loans you offer?

Which type of mortgage plan do you think would be best for us? Why?

Are your rates, terms, fees, and closing costs negotiable?

Will I have to buy private mortgage insurance? If so how much will it cost and how long will it be required

Who will service the loan?

*Ask me for the rest of the list

• What your lender needs from you- 

W-2 forms or business tax return forms if you’re self-employed for the last two or three years for every person signing the loan.

Most recent pay stubs covering last 30 days from every person signing loan papers.

Copies of two to four months of bank or credit union statements for both checking, savings, and asset accounts.

Copies of personal tax forms for the last two to three years.

Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value; a boat, RV, or                       stocks

*Ask me for the full list

• Meet with us, your trusted Real Estate professional, to go over the details to prepare for your home purchase. 

Discuss your needs, market trends, and expectations for your next home