First-Time Home Buyer TipsBy: Mercy De Jesus December 18, 2017— 11:25 AM El Paso, TX1. Know Your Buying Power – Get Pre-Approved Before starting
First Time Home Buyer Tips El Paso
First-Time Home Buyer Tips
By: Mercy De Jesus December 18, 2017— 11:25 AM El Paso, TX
1. Know Your Buying Power – Get Pre-Approved
Before starting a home search, getting pre-approved is key as it provides buyers with buying power. In today’s market, all offers require it. Your first step should be to meet with a mortgage loan officer. They know what you can afford.
Documents needed for loan application:
W-2s for the previous two years
Pay stubs (most current month)
Proof of bonuses (if applicable)
Your 2 most recent federal tax returns
Two to three months of bank and investment statements (such as brokerage, 401(k), IRA, Roth IRA, 403(b) and pension statements)
Profit and loss statements or 1099 forms (if you own a business)
A list of your debts, including credit cards, car loans, student loans, signature loans and personal loans, along with your minimum monthly payment for each
Canceled checks for your current rent or mortgage
Social Security or disability statements
Alimony and child support payments (if applicable)
Bankruptcy discharge paperwork (if applicable)
2. Applying for New Credit – Huge Mistake
You want to get into your new home, right? Well, establishing a new line of credit while in the process of purchasing a home can be a huge mistake. It may cause you to lose the opportunity of enjoying your dream home. Waiting after you’ve closed to buy a new car, applying for a loan and/or opening a new line of credit is best. Don’t make the same mistakes others have made. To obtain more information on the matter, speak with a mortgage loan officer.
3. Don’t Quit Your Job OR Cut Your Hours!
Banks are known to check credit and the status of employment even days after closing. So, don’t quit your job or cut back on your hours. All mortgage loan approvals are conditional. Besides, if you can’t pay you can’t stay. That’s the deal!
4. Choosing Your Dream Home
Making your wish list is easy. Finding a home that has every item on your list might not be, so be flexible. Those hard to find wishes may leave you renting longer than anticipated. The market changes and rates are always variable. Get a good deal while you can.
Prioritizing your list from most important to least important helps narrow the search.
5. To Inspect or Not To Inspect?
That is the question. Purchasing a home may incur some out of pocket expenses. Not knowing what you’ve purchased can potentially incur much more. A home inspection and a termite inspection are vital as they reveal important details about the home that can avoid making a costly mistake. These reports assist and guide every future home buyer. Get them.
To have the advantage in the buying process, inspect during the option period.
6. Final Walk-through
The final walk-through should ideally be performed within 1 to 2 days before closing. It confirms the property’s condition hasn’t changed, all agreed-upon repairs have been made and, most importantly, peace of mind. Having this reassurance can alleviate a lot of stress.
7. Maintain Your Home
Buying a home has its financial responsibilities. Maintaining it will improve your chances of selling it later on down the road. Just like cars need their maintenance, so do homes. A 6 month and a 1-year chart help keep homeowners on track.
The Bottom Line
Buying a home doesn’t have to be stressful or overwhelming. Knowledge is power and being ready can save you time and money.