Might be a good time or bad time to buy property, depending on your financial circumstances. If you are planning to buy a home, here are some things to keep in mind when it comes to getting the finds for it:
Have a banker or a mortgage broker run a credit check. Make sure that you don’t open additional lines of credit while you are in the buying process of your house. Banks will determine your qualifications based on your credit and income. They usually have different loan programs depending on the result of the credit check, so they will be able to have something that would be workable for you.
Prepare for the initial payment. Make sure that you have at least the down payment ready. Down payments usually cost anywhere between 5% to 30% of the total sales value. Add this the usual 10% closing cost. The less desirable your credit record is, the higher the down payment is.
Peprare all pertinent documents and organize them. This will not make processing easy, but it also tells the bank of your character. The most common information that will be asked of you to provide are the following:
- 2 to 3 of most recent pay stubs
- 2-3 months bank statements
- 2 most recent tax returns
- copy of social security card and driver license
- initial reward letter if you receive social security or pension benefits
Your bank will send a pre-conditional approval to your broker who will then handle the agreement.
If there are problems that will come up during the process, try to be flexible and patient. Provide whatever information or requirement the bank asks you to submit. The faster you comply, the faster the process will flow.
Contact your real estate attorney for advice before getting into any kind of deal, especially a lease purchase or owner financing. Make sure that all the conditions are clear to you before agreeing and signing anything.