Got the Homebuying Fever ? Here ’ s How to Prepare for the Process !
By Sherry Brady , Branch Manager , Apex Home Loans , Inc .
If you are thinking about buying a home , the first thing you should do is get pre-approved for the loan you will need to buy it . Getting pre-approved is a quick and painless process that can be done in
You can do most of the process online if you want using our online application that you can fill out at your convenience . Once we receive it , we can evaluate and call or email you back with next steps . During the pre-approval process we will discuss all the loan types available and determine which ones you qualify for , and which will be the best option for you . We ’ ll figure out how much home you can buy , what your monthly payment will be , what the closing costs are and whether you ’ ll have to make a down payment . Once we finish your pre-approval , you will be able to shop for your home with confidence , and less stress !
So , what ’ s involved in getting pre-approved ? You should plan to gather up and submit certain income and asset documents . In most all cases when you ’ re buying a home , we ’ re going to ask for the following :
• most recent 30 days paystubs
• last two years W-2 ’ s
• most recent bank statement ( all pages ) on the account that will be used for your earnest money deposit and down payment .
Depending on what type of loan you ’ re doing , or what kind of employment you have , we may also need the last 2 years tax returns , additional asset statements , or verification of other household members income .
As part of your pre-approval process , we will also need to access your credit report . We ’ ll be able to advise you of what your credit score is and let you know if there are any issues that might be a barrier to you qualifying for a home loan . Since your credit score has a huge impact on which loan programs you will qualify for and what your interest rate will be , it ’ s a great idea to know what ’ s on your credit report and what your score is , so that you have time to work on improving it if needed . Once pre-approved , it ’ s important to continue paying all your bills on time . This is not the time to forget to pay a bill ! One slip like that can cause your score to drop fifty points or more and that alone could really change the options available to you – perhaps even take away your ability to get financing .
In addition to continuing to pay everything on time , you should not open any new credit accounts or make any major purchases . If you absolutely must , then tell you lender about it first to be sure it won ’ t jeopardize your financing . Why ? Because a large part of your pre-approval involves calculating your debt ratio which tells us how much you can afford . If you go out and buy a new car after we talk , that new payment will change your debt ratio and affect how much you can qualify for .
Buying a home is the largest purchase most people will ever make . We want to be your partner and help you prepare for the biggest purchase of your life ! Ready to get pre-approved and let us walk with you on your homebuying journey ? Apex ’ s highly qualified and experienced team is ready to help you ! Go online to www . LynchburgLender . com ,
pick one of our experienced lenders to work with , or call the office at 434-237-1027 and we ’ ll connect you to one , and let us help you GET MOVING !
Sherry Brady , NMLS # 21725 ; Apex Home Loans Inc ., NMLS # 2884 ; nmlsconsumeraccess . org , Equal Housing Opportunity .