04/09/2020
While you're isolating at home, there are things you can do to help buy a home now or in the near future. Instead of spending time surfing the Internet looking at homes, do the ground work necessary to be able to purchase the home that you find.
There is a lot of documentation necessary to qualify for a mortgage and to be approved. This part of the home buying process can be done in advance, long before you even start looking at homes much less finding the one that you want.
Assemble all documents to make a pre-approval
Photo ID
Two months current pay stubs
Last two years' W2s
Complete copies of checking and savings statements for last three months
Copies of statements for IRAs, 401k, savings, CDs, money market funds, etc.
Employment history for last two years with addresses and contacts
Proof of commissioned or bonus income
Residency history for last two years with addresses and contacts
Assets for down payment, closing costs, and reserves; must provide paper trail
If self-employed, last two years tax returns, current profit and loss statement and balance sheet; copy of partnership/corporate tax returns for last two years if owning more than 25% of company
FHA requires driver's license and social security card
VA requires original certificate of eligibility and DD214
Other things may be required such as previous bankruptcy, divorce decree
Get pre-approved giving you the confidence
Determining the amount you can borrow - decreases as interest rates rise
Looking at "Right" homes - price, size, amenities, location
Finding the best loan - rate, term, type
Uncovering issues early - time to cure possible problems
Creating bargaining power - price, terms, & timing
Being able to close quicker - verifications have been made
If using a gift as a down payment, construct your gift letter
The donor's relationship to borrower
State the dollar amount is a gift and not a loan
State that no repayment is required
Signed and dated by the donor and borrower
Include all contact information
Build your homebuying team
REALTOR® - this person will coordinate the efforts of the other team members to make the transaction move smoothly, without unnecessary delays to close on time.
Lender* ... consider a trusted professional you can meet with face-to-face
Title company* ... guaranteeing the title and closing on time is important
Inspector* ... more than a flashlight and a clipboard
*Your agent can recommend these professionals based on their experience and having worked with them in the purchase and sales of other homes. This can keep you from getting hooked-up with someone that may not be familiar with the type of home, area, or loans that you might be considering. Melvin Wynn "Join The Wynning Team"
