First Time Home Buyers
There are certain steps that should be taken when considering buying your first home. This is going to be the largest purchase you will have made in your life and it should be taken seriously. You have taken a great step by clicking on to this page. It is very important to educate yourself as much as you can before and through out this process. On our site you will have access to learning about several terrific mortgage products which are geared towards assisting Americans to become home owners. Below is a brief list of loan options that first time home buyer should explore:
These options are the most common in our market today but there is still the conventional mortgage option available.
In a recent study done by the National Association of Realtors (NAR), 90% of new home buyers start their search online. Once the thought of buying a home crosses your mind it is important to consider some of the free credit report options that exist. Check the report thoroughly for any errors. Once you have viewed some properties online that you have some interest in, it is suggested that you contact a lender of your choice to have a tri-merge (all 3 creditors. TransUnion, Equifax, and Experian) credit report and get pre-qualified. Below is a list of documents that you should have prepared to give to your lender to have the pre-qualification process begin.
- Most recent pay stubs for each borrower going on the loan, covering the past 30 days
- Previous 2 years W2′s for each borrower
- Tax form 1040 from the past 2 years for each borrower ( all schedules of tax returns of self employed )
- Previous 2 months bank statements
- Most recent retirement account statements
By providing your lender these documents you can relieve yourself of a lot of the stress involved in buying your first home. At this point you will know exactly how much of a home you can qualify for but you will also know how much of a home that you feel you can afford. Those are two separate things.
Things to consider when considering buying a home or renting:
- You can usually deduct mortgage interest on your tax return.
- You can build equity paying a mortgage, whereas you can’t when paying rent.
- Home values generally appreciate.
- You can avoid increases in your monthly payment – something you can’t avoid while paying rent.
- You can cash in on equity you build in your home.
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