We are buying a home this year!
I know you are all excted now that the decision has been made to buy a home but before you start driving the streets (gas is high) and attending open houses ( homes you can't afford) let's find out where you stand financially.
1. Credit-What do you look like on paper? You are entitled to free copies of your credit reports annually from the major credit bureaus (Equifax, Experian and TransUnion). Order your reports and go over them. You should be reviewing them for accuracy and if you find errors, request corrections. Pay attention to paying your bills on time and pay down high credit cards. There are some Lenders accepting a 580 scores but most will want a 620 or above. Remember your credit score will determine your loan and your interest rate.
2. Savings: Do you have money set aside for a down payment, closing costs, inspections,etc. There are still some financing available that will offer 100% loans but they will come with requirements and certainly limitations
3. Ok so you look pretty good credit wise, you have funds for a downpayment so what do you do next? Contact a Lender to get pre-approved for a loan. The lender will advise you of what documents to bring with you to complete the process. (W-2 forms, verificiation of employment and income, copies of pay stubs, banking statements, etc)
We will pause here to allow you to line up your finances.
If you are at the starting point when looking to purchase your first home or move up contact Sanford & Seretha Sellers. Sanford & Seretha is better known as The Sellers Team.