- Buying a home is very exciting! Sometimes, in all that excitement things are forgotten. Like how much can you really afford?
- Best advice, first, see an accountant. Bring financial information and tell the accountant everything about your financial profile. What you make, what you owe, how you live, and what you like to do.
- You don’t want to be house poor. So a balance between what you want to buy, and how you want to live has to be struck. We have names of accountants if you need them.
- Next…you’ll need solid, experienced real estate agents, like us, who are engaged with your needs. We inform, protect, and empower you, and we promptly return your calls/emails/texts.
- Large or small homes, whoever you are, with whomever you associate, and however you classify yourself, We respect you, and value your trust.
*If you have credit issues, or simply want to improve your credit, do that before applying for a loan. The better your credit rating, the better your interest rate. We can help, and lenders can help you too.
- Ask us for the names of two or three good lenders, then interview them. Look around, because rates and programs differ with each lender.
- It’s from the lender that you obtain the loan pre-approval letter that tells you how much you can spend, and allows you to go shopping. Do this BEFORE looking.
- The house you want may be more than you really afford. A meeting with an accountant will come in handy because you’ll know how much you actually can afford without destroying your dinner dates, vacations, drinks with friends, etc.
- BTW, after you decide how much you can actually afford, have the lender write the pre-approval letter specifically for the home you want to buy, and for the amount of your offer. You don’t want the house seller to know the maximum you can afford.
Here’s what most lenders will ask for when applying for a loan, either in person, or on line. Gather all of this material before you start interviewing lenders.
- 2 years tax returns (all pages) and w2’s or 1099/K1’s
- 2 months bank statements.
- Statement from 401K, stock, bonds
- A list of debts and assets
- 2 forms of ID
- Last two paycheck stubs
- If self Employed YTD P&L, Tax, Insurance, and mortgage statement on any property you own now. If no property owned, rent where you are now.
- If you own income property, or if the property you’re buying has an income generating apartment, the lender will want to know about that too.
- Title Companies (where your act of sale takes place) are not all the same. Your agent should know several good Title Companies, but if you have any doubts, ask your loan officer for a recommendation. Remember, in most instances, you have the right to select the title company. Efficient Title Companies can make a big transactional difference, saving you time and money. We can help you with this issue.
There’s a lot more that you will need to know…we have the answers.
Call us. O’Malley & Associates. 504-579-4717
Middleton & Wanda O’Malley
NAR Certified (ABR) Buyers Agent