I Want to Buy a Home...Now What? Pt. 1
Today’s post comes courtesy of Melissa Imo-Moffitt, Mortgage Loan Officer at the Lynch St. branch. It’s the first in a series about the steps in buying a home.
I want to buy a home, now what?!
First step: Pre-approval
Purchasing a home can be a very smooth process when you follow a few steps. Today’s post is all about the first step. Step one: Call your credit union loan officer and asked to get pre-approved. This is the absolute first step in the home buying process. The mortgage loan officer will ask for your employment information (so have your most recent W2 and your most recent two paystubs handy). He/she will also ask where your down payment is coming from. Do you have a savings account, checking account, 401k, gift, etc...? It is a good idea to print out your last two bank account statements.
The loan officer will look at your credit report to determine if you qualify to purchase a home and use the credit report to identify your debts are and how much you can afford. It is a good idea to know what is on your credit report. Consumers can access a free credit report every year. If you haven’t looked at your credit report, go to www.freecreditreport.com and look at what is on there. No one wants surprises when it is time to buy a house!
When everything falls in line and you are pre-approved the mortgage loan officer will give you a pre-approval letter. This letter is based on your credit report and the information you provided. There will be some stipulations in the letter like ordering an appraisal, purchasing title insurance, continued employment (imagine that!), and debt and income remain the same. (So don’t go out and buy a car after you get pre-approved! Make sure you speak to your loan officer before making any big purchases.)
Now you have a pre-approval letter, it is time to find a Real Estate Agent and go shopping! Stay tuned for my next blog post on choosing a Real Estate Agent. If you have questions in the mean time, comment on the post or call one of our loan officers.
