Home Buying 101 - ffbkcblog.files.wordpress.com€¦ · Home Buying 101 Five steps to a smooth...
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Home Buying 101 Five steps to a smooth mortgage process
Transcript of Home Buying 101 - ffbkcblog.files.wordpress.com€¦ · Home Buying 101 Five steps to a smooth...
Home Buying 101Five steps to a smooth mortgage process
Q: Does buying a home have to be stressful?
Absolutely NOT!
Most people assume stress “just comes with the territory” when you buy a home, but the truth is it doesn’t have to be an ordeal!
If you follow the five easy steps we’ve outlined in this guide, you’ll be on the way to home ownership without tearing your hair out. Read on to learn more >>
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5 Steps to a smoothmortgage process
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Be prepared Trust the Boy Scouts’ motto on this one: Get your tax, income and insurance documentation squared away now.
Get pre-qualified Get pre-qualified for a mortgage to get real estate Agents to take you seriously
Talk about your loan options Your Home Loan Consultant will help you choose the right options to help you achieve your goals
Find your home!
Introduce your agent and loan officer Your Real Estate Agent and Home Loan Consultant will work closely together to get the deal done
1Be preparedEvery lender requires the same basic documents from you. Use this checklist to know what they are and start gathering them now.
Documenting your income ☐ MOST RECENT 2 Years Federal Tax Returns complete with all schedules ☐ In business for yourself? We will need 2 most recent years of your Federal Returns, along with the K-1 statements.
☐ Two most recent years’ W-2 Statements ☐ Most recent month of Paystubs or LES’ for ALL borrowers ☐ Continue to keep all paystubs from now until your loan closes ☐ Receiving Social Security? You will need the most recent Award Letter you received from the SS Administration
Documenting your assetsIf you have any money due at closing (down payment, closing cost, etc.) the Lender will want you to document the accounts you are drawing those funds from.
☐ Bank Statements or Investment Statements for down payment and closing costs ☐ Full Statements (all pages) covering past 60 days ☐ Continue to gather all statements until you close ☐ Document and retain paper trail on any transferred money or large deposits
Getting a gift?Any gift funds need a Gift Letter – contact your Home Loan Consultant
Other stuff ☐ If you are a Veteran and doing a VA Loan, have your DD214 available ☐ If you have rental properties, keep a mortgage statement, homeowner’s insurance bill and tax bill for all your properties
☐ Will your current home be sold by closing on new home? If not, you may need reserve assets!
☐ Start to think about your new homeowners policy. Your lender will need it prior to closing.
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2Get pre-qualifiedMost Real Estate Agents will not show you homes unless you’re pre-qualified for a home loan. Shop your lender options first, then get your pre-qualification letter from the one you choose.
Ready to get pre-qualified now? Complete this form and fax it back to us (877) 651-4760.
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Annual IncomeAlimony, child support or separate maintainence income need not be revealed if you do not wish to have it considered as a basis for repaying this obligation.
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Bank Accounts & Investments
Installment & Revolving Debts
Other Information
$__________ __
$____________
$____________
$____________
$____________
$____________
$____________
$____________
$____________
$____________
$____________
$____________
Base Income
Overtime**
Bonuses**
Commissions**
Other
Total:
Borrower Co-Borrower
Borrower__________________________________________
Home ph.________________Work ph.___________________
Soc.Sec.#__________________Fax#____________________
DOB:_____/_____/_____ Cel.#_________________________
Marital Status: ___Married ___Unmarried ___Separated
Dependents: Number______Ages_______________________
Years at Present Address*____ Own or Rent
Home Address______________________________________
City__________________St.___________Zip_____________
Present Employer___________________________________
Work Address______________________________________
City__________________St.___________Zip_____________
JobTitle____________________________________________
Date of Employment*_________________________________(*) On a separate attachment, please list any additional residences or employers you have had during the previous two years.
Co-Borrower_______________________________________
Home ph.________________Work ph.___________________
Soc.Sec.#__________________Fax#____________________
DOB:_____/_____/_____ Cel.#_________________________
Marital Status: ___Married ___Unmarried ___Separated
Dependents: Number______Ages_______________________
Years at Present Address*____ Own or Rent
Home Address______________________________________
City__________________St.___________Zip_____________
Present Employer___________________________________
Work Address______________________________________
City__________________St.___________Zip_____________
JobTitle____________________________________________
Date of Employment*_________________________________
Checking
Savings
Stocks & Bonds
Other_____________
Total:
Balance$________________
$________________
$________________
$________________
$________________
Borrower and Co-Borrower Combined
Real Estate Loans or Rent
Alimony/Child Support
Total:
Are you (Pone): Selling____
$_________
$_________
$_________
Renting____
$_____________
$_____________
$_____________
Retaining____
Mo. Payment Unpaid Balance
Borrower and Co-Borrower Combined
(POne) YES NO
Will any part of the down payment be borrowed?
Are you a co-maker or endorser on a note?
Are there any outstanding judgements or past foreclosures?
Have you ever declared bankruptcy?
Will the property be your primary residence?
I verify that the information provided is correct to the best of my knowledge. I understand that First Federal Bank will verify the information and that final approval is subject to verfication of such information. I grant First Federal Bank permission to obtain a preliminary credit report.
Borrower:________________________ ________ Co-Borrower:_______________________ ______ _ Signature Date Signature Date
___ ___ ___ ___
___ ___ ___ ___ ___ ___
P r e - Q u a l i f i c a t i o n I n q u i r y
Class or Referred by:_______________________________ Date____________________________________________
Office: (816) 245-4160 Cell: (913) 219-0119Fax: (913) 339-0247
Rick MonleyHome Loan Officer, NMLS# 779969
(**) Average for the previous two years.
I acknowledge that: the information provided in this application is true and correct as of the date set forth opposite my signature and I understand that it is a federal crime, punishable by fine, imprisonment, or both, to knowingly make any false statements concerning any of the above facts, as applicable under the provisions of Title 18, United States Code, Section 1014.
3Talk about your loan optionsWhat is most important to you about your home loan? Whether it’s minimizing the cash needed to close or getting a low monthly payment, let’s identify your priorities.
FHA LoansPros:Low down-payment - 3.5% of home purchase price (can be a gift from a family member)Attractive interest rates - Since these loans come with a government guarantee, you can get some of the lowest mortgage rates available.Cons: Mortgage Insurance - Both an up-front premium due at closing and monthly mortgage insurance payments for the life of the loan.More paperwork - A good “rule of thumb”in mortgages is the less money you’re putting down to buy a home, the more asset/income documents you’ll need to provide. Be prepared for document requests above & beyond the list on page 3.Tougher home inspections - The home you’re buying must meet FHA/HUD requirements, which are more stringent than most lenders would require for a Conventional Loan. Conventional LoansPros:Reasonable down-payment - Can range from a low of 5%, up to a “typical” 20% down paymentAttractive interest rates - Rates are still attractive, but your FICO score is going to play a big role in your rate. The higher your score, the lower your rate.Cons: Mortgage Insurance - If you’re putting down less than 20%, you will be required to pay mortgage insurance (PMI) You can ask to have it removed from your loan once the balance of your mortgage is less than 80% of the original value of your home.
VA Loans (Must be Active-Duty Military or Veteran to qualify)Pros:Low / No down-payment - You may qualify to buy a home with 0% down.Attractive interest rates - These loans carry a government guarantee, so rates are very attractive.No Mortgage Insurance - Unlike most loans with down payments under 20%, there is no PMI.
Cons: Funding Fee - A VA loan typically requires a funding fee, which can be added to the loan amount. However, this can be waived if you are more than 10% disabled, according to the Veterans Administration.
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4Find your home Once you find a home, you will negotiate the price, choose a closing date and sign a sales contract. Now you’re on the clock!
As soon as you sign, do the following:
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Get a copy of the sales contract to your home loan consultant immediately - We need this to lock the interest rate on your loan!
Get the name and number of the Title Company that will be handling the purchase to your home loan consultant
Get the documents you collected from page 3 to your Home Loan Consultant ASAP
Sign and return your initial loan disclosures
5 Introduce your Agent and Home Loan Consultant
If you haven’t done so already, it’s time to introduce your Home Loan Consultant to your Real Estate Agent.
These two individuals need to communicate with each other during the process to get your home purchase completed as smoothly as possible.
Just one more tip:Communicate with your Home Loan Consultant and make sure you respond to requests quickly. We know it’s a pain to track down tax/income/asset documents, but the sooner we have them, the sooner we can get you into your new home.
Thanks for taking the time to read this! We’re looking forward to being a part of your home buying experience, and we’ll see to it that everything goes as smoothly as possible at First Federal Bank!
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