Get Organized!

So you want to buy your first home? The next step is to get organized. Keep all your records in one place. A number of things must be collected/gathered  In this file:

Credit reports: This is very important. Take the time to check your credit report and fix any discrepancies you might find. A poor credit rating will cost you thousands of dollars in higher interest payments over the life of the loan, if you can get a loan at all. The banks have tightened lending standards. Your mortgage options are limited with a poor credit report.

The next step is to get pre-approved by a lender. Any good, reputable realtor will want to know if you can afford to buy the home you want. He or she will call the lender and verify the pre-approval information. No one will accept an offer without a pre-approval letter.

What is needed to get pre-approved? This will vary from lender to lender but includes your latest pay stub, W-2s and tax returns from the last 2 years, last 2 monthly asset statements from your bank, 401k, and loan and payment information on any outstanding loans. Also, they will want to know how much you spend on rent and the landlord’s contact information. The loan officer will open a file and determine how much home you can afford. With that information in hand, you can start the home search.

You can work with any lender you choose, but I recommend Lenka Duffy at Wells-Fargo. You can reach her @773.290.2105. She will take the time to guide you step by step through the process. It will be fast, fun and best of all, it’s free.  

Read more "Buying a Home" posts here.