So, you’re thinking about buying a new home? Make sure your ducks are in a row. Having a PreApproval Letter in hand is paramount before writing an offer to buy on a home in Highland Park. I’m a Highland Park Realtor. When people contact me interested in buying a home, one of the first questions I ask is, “are you pre-approved working with a lender.” If they tell me, “no.” I encourage them to get that step completed before open house shopping. It’s impossible for a first-time homebuyer to know what mortgage amount they qualify for without taking the necessary loan pre-approval steps. Below is a list of Things you must know when purchasing a Highland Park home.
- Keep all of your payments current. Car, credit cards, student loans, you name it. If it shows up on your credit report it must be paid on time.
- Your lender needs to be kept abreast of any kind of financial move you are considering to make.
- File your Federal tax returns 4-6 weeks before being able to utilize your qualifying taxable income. (Basic standard is 2 years of Federal tax returns in your loan file, must be verified by Uncle Sam.)
- Make sure all of your funds being used for your loan have seasoned in your account for 60-90 days coming from an eligible seasoned source i.e. gift from an eligible donor, funds from a sale of another property (home, car, boat etc.) All funds must be fully paper trailed and from an eligible source if not already seasoned. (Verify eligibility with your preferred mortgage broker.)
- You must paper trail ALL non-payroll check deposits for each bank statement requested.
- Save the difference between your current mortgage or rent and anticipated mortgage expenses each month and show that amount being deposited in your savings account. This shows the underwriter you have assumed responsibility before being obligated. It also shows no payment shock and helps in getting your loan approved. Additionally, you get to see the impact on your lifestyle before you’re obligated also.
- Remember to send your Mortgage Broker updated documents as you receive them – bank statements, pay-stubs, etc.
- Make sure you stay in contact with your lender. Call them if you have concerns or are not comfortable about anything. It’s normal to be nervous. Buying a home is a big deal and the process can feel a bit like a rollercoaster ride. This is all part of the process, but if you’re feeling more than that, please call. They are there to help.
- Last, make sure you’re also very excited. You are buying your own little slice of this planet, after all!
If you are thinking about buying a home in Highland Park I’d love to chat with you and introduce my preferred mortgage broker Joe Tishkoff of Finance of America. Together Joe and I will work as a team helping you find the best spot for you to call home while making the escrow and loan approval ride as smooth as possible.
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