One of the biggest, or at least scariest, hurdles for home buyers is the financing. If I have just described you, relax and call a reputable local lender soon. A local lender will sit down with you and go over your personal and specific situation. They will help you determine if you are ready to buy or, if not, what you need to do to become ready. You might find out you can afford more than you expected and can buy tomorrow when you thought it would be years, or you might find out that you need to stay at your current job longer. Until you talk to a lender, you don’t know how able or unable you are to buy. So, call a lender.
A few other things you can do to make the financing process easier:
• If you do not have your paperwork organized already, now is the time! The lender will require many documents from you, such as your W2s, 1099s, at least two months of bank statements, one month of pay-stubs, and potentially two years of taxes. You will find it much easier to provide those if you have them all together and organized.
• While you are working on your paperwork, file your taxes as soon as possible so the most recent income can be used (since often it is higher). And, hey, you might get a refund, which would help with your down payment!
• If you will be getting your down payment from:
• selling any personal property, such as a car,
• receiving a gift from a family member,
• or somewhere other than your current bank account, keep records about the origin of this “new” money.
• Wait to buy a new car or make other major purchases that require credit until after the transaction closes, and you own your property. This includes financing furniture to fill your new home or buying that new car – make sure to talk to your lender before making any large purchases as it may affect your ability to buy.
• Also, wait to change jobs! Any change in employment can affect the loan.
As you can see, there are some tasks to do to get ready to finance the purchase of a house, no matter when you end up buying. The best person to help you drill down and determine where to start in the preparation process is the lender. A Town & Country Realty Broker can refer you to a great local lender who will help you with a game plan that works for you. Call us today for help with finding a lender to get you started on your path to home-ownership or for any of your real estate needs.
You can reach us at 541-924-5616 in Albany or 541-757-1781 in Corvallis.