Information you will need when buying your home
To own a new home you will need to have pretty good credit. If you do not have good credit, start repairing your credit immediately. You will also need a down payment as well to purchase a home. The amount of your down payment will depend on the type of loan you get. Many government home loans only require 3% down. A mortgage company or bank may require 10% to 20% as a down payment on your home. You will also need to document your source of income. There are many programs available to qualify for your home loan. These programs accept a variety of income types. Many people are self-employed and other people work full time jobs. If you are self employed, you can use your income taxes to qualify for your home loan. If you work full time you can use your W-2's and taxes to qualify for your home loan. You can also use bank statements to qualify for your home. This is called alternative documentation. This is part of your mortgage process.
Earnest money deposit
You will also need an earnest money deposit to open escrow. This is usually an amount from $3,000.00 to $10,000.00 that must be deposited into escrow to start your home buying process. You may be required to put a larger earnest money deposit depending on the purchase price of your home. The earnest money deposit amount is used in case you are unable to close your escrow for any reason. This amount can sometimes be non refundable and will be given to the seller or used to cover escrow expenses.
Hire a good realtor
Another item to put on your list before purchasing a home is to hire a good realtor. A good realtor will find the exact home you are looking for. Make sure your realtor is qualified and has your best interest in mind. Your realtor will search the real estate market to find the exact home you would like so be specific about the type of home that you want. If you are looking for a single family residence, you need to advise your realtor of this. If you would prefer a condominium, advise your realtor as well. Also advise your realtor of the amount of money you would like to purchase your home for so your realtor will stay within your budget when searching for your home. You may also want to let your realtor know the number of bedrooms and bathrooms that you would like for your home.
Find a good mortgage company
Finding a good mortgage is the most vital part of purchasing home. You will need a mortgage to purchase your home. There are many places where you can obtain a mortgage loan including mortgage companies, banks and credit unions. There are also many different types of mortgage home loans that you can choose from. You may want a 40 year loan, a 30 year loan, or a 15 year loan. These are the most common types of mortgage loans available. There are many programs available to help you qualify for your mortgage loan as discussed in the previous chapter. If you are self-employed, you can use your income taxes to qualify. If you work full time, you will be using your W-2s and income taxes to qualify. There are also alternative sources of documentation that can be used to qualify for a mortgage loan such as bank statements. You can use business bank statements or personal bank statements. If you are self-employed, you may use your business bank statements and the bank underwriter will average your income based on the deposits made into this account. You can also use your personal bank statements. If you would like to use your personal bank statements, the mortgage underwriter will also average the income from your deposits from your personal bank statements and use them to qualify you for your home.
