Buying your first home is an incredibly rewarding experience. The transaction process is complex, but you can trust Keyes and our expert Realtors® to simplify it for you. More importantly, we will guide you every step of the way; making sure to transparently present information that will help you make informed decisions. Our goals for you are peace of mind during the transaction and a dream home at the end of it.
HERE’S WHAT YOUR JOURNEY HOME WILL LOOK LIKE:
WHAT YOU NEED TO SECURE FINANCING
Different lenders need different documents, depending on their lending criteria. Below is a list of what you will likely need available during the application process.
- Pay stubs for each applicant reflecting a minimum of 30 days of income.
- Names/addresses of employers during the previous two years.
- W-2s for the previous two years.
- One or two (or more) years of tax returns.
- IRS Form 4506-T or 4506T-EZ
- Two or three (or more) months of bank statements.
If you have other forms of income or are self-employed, you will need to provide proof of income. Your lender will also request information on outstanding debts like auto or student loans and credit cards. As they review your application, your lender will likely request other documents.
Pre-qualification vs. Pre-Approval - What's the difference?
Many lenders use these terms interchangeably, but what you provide for a pre-qualification and pre-approval may differ. Either way, it is important that you and your Realtor® position you to show sellers that you will be able to secure financing once you enter into a contract to buy their home.
Pre-qualification usually requires that you supply your income, assets, debts and credit score to a lender, but doesn’t require full documentation of your financial history. This means that they won’t check the full accuracy of what you report. Pre-approval requires this documentation to verify that what you report is correct. It will also often require a credit check and corresponding hard inquiry on your credit report.
Because of this, pre-approvals may be seen as a more definitive ability to get approved for a mortgage. If you report your financial history accurately, a pre-qualification will report the same or similar amount when it comes to the loan a lender will approve.
Either way, once you receive your pre-qualification or pre-approval it’s important to make sure you don’t do anything that will negatively affect you when it comes time to officially apply for financing.
YOUR TURN-KEY SOLUTION
The buying process can be complicated, but Keyes streamlines it by providing you access to our leading mortgage, title, insurance, and property management services.
Your situation is unique. If you are seriously asking yourself this question, chances are, probably! To find out definitively, let’s discuss your situation and whether it’s time to start the homebuying process.
You will receive an estimate of costs to close from your title and mortgage partners. This estimate will split out which side pays each cost and how much you will owe before or on the closing date.
WHAT GOES INTO DUE DILIGENCE?
Once your offer is accepted by the seller, you will want to hire an inspection company to walk through the home. They will let you know more about the appliances, HVAC, roof, foundation, and more.
In addition to holding down payment and other closing funds in escrow, your title company will complete records searches and other details to make sure no other parties can claim ownership, liens, or debts on the property.
Your mortgage partner will have an appraiser review recent sales in the area to determine the value of the home they will use to approve the mortgage loan.
Your insurance provider will request the details of the inspection to quote your homeowner’s insurance policy details. If your property requires flood insurance, that will be included as well.
Some subdivisions with a homeowners association require that you get HOA approval before closing on your home. Make sure you or your Realtor® connect with the association to find their requirements and restrictions early on in the process.
OUR TEAM IS HERE FOR YOU
Whether you are looking to buy, sell, rent, or join our family of expert Realtors®, we have someone standing by who can answer all of your questions. Let us put your mind at ease and give you a platform for a successful real estate experience.