Ready to Buy a Home ? Here ’ s How to Prepare for the Process !
By Sherry Brady , Branch Manager , Apex Home Loans , Inc .
When you ’ re ready to start seriously thinking about home ownership , one of the first things you should do is get preapproved . Getting pre-approved is a quick and ( hopefully ) painless process that can be done in minutes in most cases and we can do everything online or by phone ! During the pre-approval process we ’ ll discuss all the loan types available and determine which ones you qualify for based on your credit , income and assets . 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 . If you prefer online , we have an online application that you can fill out at your convenience , and once we receive it , we can evaluate and call or email you back with next steps . Once we finish your pre-approval , you ’ ll 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 , most recent statement on any other asset accounts if you ’ ll be using an income-based loan program such as USDA or VHDA , and a photo ID . I highly recommend that once you ’ re initially approved , you continue to send your lender updated paystubs and bank statements as you receive them so that once you find your dream home , all of your verification documents will be up to date .
As part of your pre-approval process , your lender will also be asking for your permission to access your credit report . Once received , we can advise you of what your credit score is and let you know if there are any derogatory items on your report that may be causing your score to be low . In many cases , we may be able to advise you of changes you can make to improve your score . Since you 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 you ’ re pre-approved , you ’ ll need to continue to do certain things to ensure that you pre-approval will remain valid . Most importantly , you need to continue paying all your bills on time . Once you begin looking for a home , this is not the time to forget to pay a bill ! One slip like that can cause your score to drop 50 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 make any major purchases , or even apply for any other credit without discussing it with your lender . 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 .
We want to be your partner and help you prepare for the largest 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 .