Part 2: Common Questions From First Time Homebuyers - How Do I Qualify For a Loan

July 12, 2012

In a previous post we talked about common questions that abound from first time homebuyers. Buying a new home can be a lot more involved then renting a home so it's only natural to want to research the process and begin to understand exactly what being a homeowner entails. We touched on some of these a bit in our last article, but many questions new homebuyers have revolve around the important question. How do I get the loan? How do I know if I qualify for a loan? Well, if you don't begin to a talk with a loan officer you will never know. There are a zillion mortgage calculators online, and while those may give you an idea if you punch in your income, it's a lot harder to begin to understand all the nuances without speaking with a professional. How do I find the right lender? As we said before there are a host of options when it comes to finding a lender. You can go the route of talking with your own bank, a local credit union, and if you are considering buying a new home, often the builder has preferred lenders that they work with to help make the process go smoothly. Not only will this help move along the process, a preferred lender will be familiar with all the nuances of the particular property you desire. They know the taxes, insurance, HOA and other fees . What do I need to actually apply for the loan? There is a whole list of information that is needed in order to apply for a loan. The more prepared you are upon your first visit the smoother the process on getting prequalified and avoiding any surprises. You will need:
  • Social security numbers of all parties who intend on being on the loan
  • At least 6 months worth of statements for all checking and savings accounts
  • Documentation on all assets such as stocks and bonds
  • Proof of earnings in the form of a paycheck stub
  • A list of all your credit cards and include outstanding amounts as well as monthly payments
  • Remaining balance on any other loans such as car or boat loans and their respective account numbers
  • A copy of your income tax returns for the past 2 years
Lenders may ask for other information but this will be a good start. A big question often asked by first time homebuyers is about loan types. We will talk more about loan types in our next article. What are your biggest questions as a first time homebuyer, or new home buyer?
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