Getting ready to meet with a mortgage lender can be exciting; you’re one step closer to the home of your dreams. Don’t let the paperwork put a damper on things! Your lender is there to help you through the homebuying process, so you’ll want to assist them as much as possible. The information lenders ask for is vital to getting the keys to your new home, so it is helpful for you both if you come prepared. These are 5 documents you’ll need to buy a home.
1. Paystubs: Your lender wants to see paystubs, award letters for Social Security, and pensions or retirement from the last 30 days. The paystubs are your proof of current income and allow lenders to get an understanding of how much money you’ll have flowing in each pay period. It also lets them know a little bit about your employer or if you are self-employed.
2. Taxes/W2s: Lenders usually require the past 2 years’ worth of tax information, including returns and W2s This is mostly to let your lender know how much you really made, but it also gives them the chance to compare your numbers. Your lender must be able to verify all the assets you have listed on your application, so all your documents must match.
3. Bank Statements: You should provide your lender with at least 2 months of recent bank statements. They need to see that your income is being deposited into your account, as well as whether any additional deposits being made or any significant expenses. If you are receiving additional income from somewhere else, be prepared to show your lender where it is coming from and why. This includes any kind of “gift” you might have gotten from a family member to help you buy a home. Keep in mind that your bank statements will show if you’ve had any “NSF” or Non-Sufficient Funds.
4. Divorce Decree: While asking for your divorce decree might seem unnecessary, it is incredibly important to provide. There might be documentation with a previous last name, which the decree can easily explain. Your lender also needs to see if your name is on another mortgage. If your ex-spouse is now responsible for making payments on the mortgage your name is on, you’ll need to provide either a friend of the court printout or 12 months of cancelled checks to show your ex-spouse has been covering payments from their own account. Your decree will also let your lender know if you are obligated to make or are receiving alimony or child support payments. You only need to disclose how much you receive in payments if you are depending on them to help you qualify for a loan and to make mortgage payments. If you are, you will also need to provide proof of that income being received on time. If you do have an obligation to pay alimony/child support, your lender needs to know how much, as it affects your income. Whether you are receiving or obligated, your lender needs to know how much the payments are for and how long they are to continue. Click here for more information on how divorce can impact your finances.
5. Explanations: This might be the most tedious task, but it will help you and your lender move through the homebuying process much faster. Find and provide your lender with explanations for absolutely everything that impacts your income or credit for the last 2 years. If you do have bank statements showing “NSF,” tell your lender why. Don’t be embarrassed to tell your lender if you lost your job at any point within the last two years, they want to know. If your credit score is not great because of a late payment or an emergency, explain what happened. Every detail you can provide your lender will allow them to help you to the best of their ability.
The documentation you must provide can be overwhelming and time consuming to track down, but don’t feel like you are doing so for no reason. The required documentation will help you get the loan you need. If you’re interested in getting pre-qualified, click here for a more detailed list of items you’ll need. Your lender is on your side and wants to make your homebuying experience as smooth and efficient as possible, so meet with them prepared and ready.
As a mid-to-late life homebuyer who is ready to change one’s lifestyle or downsize, finding your retirement home will be different than your previous homebuying experiences. This time, you’ll be looking for a home with a shifted focus on what features you find important. The home you buy needs to meet all your current and, more importantly, your future needs. Use these tips when house hunting for a retirement home.
Location: While previously a significant factor when purchasing a home, this time the location of your home needs to be top priority. Take into consideration that driving may not always be an option or even desirable. You’ll want to choose a place that allows you to easily access all the essential places you care about. Your hobbies and interests, such as the beach, golf courses, pools, etc., should be close and have a minimal commute. Cities have public transportation which allows residents to not even need a car. If your friends and family live in rural areas, perhaps moving closer to them might be another option to avoid commuting.
Single-story Homes: If you are thinking about downsizing, now is the time. A single-story home is ideal for older homebuyers. Eventually, going up and down stairs will become troublesome, and there is always the possibility of needing to accommodate a wheelchair or walker. Stairs, even just a few, can make getting around your home more difficult. If you’d like to buy a two-story home, consider having the master bedroom on the first floor. The rooms upstairs can be used for grandchildren or guests. Whichever way you decide to go, plan for the house that will be best for you later, not just what works for you right now.
Space: Luckily, space is a popular feature in many new homes so it shouldn’t be hard to find. “Open” room concept homes allow for your kitchen, living and dining rooms to flow together. You’ll have less clutter and easier navigation. You should also keep an eye out for larger bathrooms and entryways. More importantly, look for extra-wide hallways and doorways. These will accommodate wheelchairs/walkers and you won’t have to avoid or move around tight spots.
Important Amenities: A walk/step-in shower will reduce some of the risks that accompany using a bathtub at an older age. Instead of having to step over the side of a tub, having a small step or no step at all is much safer and wheelchair friendly. A larger shower will also come in handy if a beach seat or railing needs to be added. Ramps into your home are not only a wheelchair/walker friendly accommodation, but removes the risk of falling from carrying anything up or down stairs, such as groceries. Keep an eye out for kitchens with lower counters and easy to access cabinets. Use a checklist when touring to keep track of what each home has to offer.
Property: Consider a yard that will fit your needs fifteen years down the road. While you might be able to cut the grass, pick weeds, rake leaves, and shovel snow now, that might change. Paying someone to do those tasks for you will get more expensive the larger the piece of property, so factor in the additional costs when making a budget.
Pets: Your pet should absolutely go with you wherever you move, however, some places might have specific pet policies. Be sure to check for any restrictions before deciding on a home, especially if you’re thinking about a retirement community or condo. If you are considering a new home in a multiple story building, be prepared to take your pet on an elevator.
When preparing to take the next step for your future keep some of these ideas in mind. Homebuying is exciting but can be stressful, especially if this is going to be your retirement home. Knowing what to look for and expect will help ease your mind. Thinking ahead by choosing a home that will meet both your current and future needs will save you time, money, and stress down the road. If you’re thinking about a new construction home, you can use these tips as a guide when thinking about layout and design. Here are some additional items to consider if you are a single homebuyer.
When starting the homebuying process as an individual buyer, there are some unique aspects you’ll face that don’t require as much attention from co-borrowers. While it might seem intimidating, all you need to do is spend a little extra time preparing. These 5 tips for single home buyers will lead to a smooth homebuying experience.
1. Affordability: When buying a home with a co-borrower, there’s usually two sources of income to cover a down payment, mortgage, and other bills. As a single buyer, you must be able to cover costs on your own. Take into consideration every possible expense—maintenance fees, HOAs, utilities, an emergency fund—when deciding on a budget. It’s important to make sure you’ll be comfortable in affording the home you choose. Consider saving more money than if you were to buy a home with a co-borrower. Doing so will provide peace of mind in knowing you can afford your home. For ideas on how to save money for a down payment, click here.
2. Maintenance: While you need to factor fees into your budget, maintenance might require more attention than expected. As the sole homeowner, you’ll be the one to take care of your home. Be confident in knowing you can maintain the home you choose.
3. Safety: Picking a neighborhood is just as important as picking a home. Your home should leave you feeling completely safe and secure, so be sure you choose a neighborhood or community that lets you be completely at ease. For more information about choosing a neighborhood, click here.
4. Choosing a Home: You don’t have to go through the home purchasing process on your own. Single buyers, especially first-time buyers, might feel overwhelmed or have skewed judgement from excitement. Take a family member or trusted friend along when house hunting for a second opinion or to be a voice of reason. They only want what is best for you, so they’ll make sure the home you buy is perfect for you.
5. Thinking ahead: Buying a home is best as a long-term investment, but keep an eye on what your future may hold. Down the road you could find a partner, or your job might need you to relocate. The resale value of the property might be something you should seriously consider. Just because it’s only you right now doesn’t mean the addition of a partner or child is out of the question. It could be worth it to think about going bigger now, even if it is just a spare room. The extra space could come in handy—but only if the addition fits comfortably within your set budget.
The bottom line is simply to do your homework. Thoroughly research what you can afford that leaves you some wiggle room. Talk to your family and friends about their experiences with homeownership, especially if they did so on their own. Realtors are also there to provide information, give their advice, and to answer questions you may have.
Last week, we talked about the second step in the home purchase process: choosing your loan type. Once you and your lender have determined the type of loan that will best suit your needs, the next step is to begin your home search. This may be the most exciting part of the process, and it can be easy to get caught up in that excitement. It’s important to make this decision carefully, consider your options, and to work with knowledgeable professionals who can help you make the best choice.
Choose the Right Real Estate Agent Your real estate agent will be your guide through your home search, so he or she should be someone that you can trust. Hire a Realtor who takes time to understand your needs and to explain anything that is unclear. The right agent will help you enter the process prepared and confident.
“It’s very important to work with a real estate agent who first consults with you to find out your needs,” says David Bonanno, California Branch Manager with NFM Lending. “Home buyers are our lifeblood and who we serve. We have to know what their wants, needs, and budget are.”
Choosing a Home There are many factors to consider when looking for a home. Plan carefully and talk to your real estate agent about the following things before beginning your home search:
Your budget – Make sure you know your price point, accounting for all additional costs and fees, and discuss it with your lender beforehand. Limit your search to homes within your budget; otherwise, you may fall in love with a home you can’t afford. It’s also important to know whether you want to buy a newly built home or not.
“Everyone thinks buying new is the best way to go. What they do not realize is all the money that will be spent on the yard, light fixtures, window coverings—things that may not be included in the purchase of the home,” says David. He recommends that buyers interested in purchasing a newly built home keep in mind the extra costs associated with this kind of purchase.
Your priorities – Searching for a home can be an emotional process, so it’s important to keep a list of what’s most important to you, so you can limit your search to homes that fit your criteria. For example, you want a short commute to work, or want a large backyard, or want three bathrooms. Communicate this to your real estate agent and only look at homes that will meet your needs.
The Neighborhood – When you find a home you like, take time to observe the neighborhood. If you can, talk to your potential neighbors and ask what they like about the neighborhood. Come back at different times of the day and week. Read the local newspaper or blog to get a sense of the community and to find out whether there are any potential concerns.
Other things to keep in mind when searching for a home are your short- and long-term goals. David suggests thinking about how long you plan to live in the area, and whether you will need room to grow as your family grows. Buying a new home is an investment in your future, so it’s important to have your future in mind when you are choosing your home.
Once you’ve found the right home, you will work with your real estate agent to make an offer on the home and sign a contract. From there, you will move onto the next step to purchasing a new home: applying for your home loan.
When you are ready to purchase your new home or refinance your current one, you will be given a series of documents you need to sign at settlement. Understanding what you are signing is important and it will help ensure that you are making the correct decision. Three important documents to review and understand are the Deed, the Note, and the Deed of Trust.
The Deed
The Deed is a legal document which gives rights to something. In real estate, a Deed transfers title of ownership and gives the new owner the rights to use the property. Click here to find out more about Deeds and the different types there are.
The Note
The Note (or Promissory Note) is a contract where a party makes a promise to pay a sum of money to another party under specific terms. In real estate, the Note is the legal document that binds the borrower to repay a mortgage loan. This agreement will contain important loan specification, such as the loan amount, interest rate, due dates, late charges, and the terms of the mortgage.
The Deed of Trust
The Deed of Trust (or Mortgage or Security Instrument) is a legal document that grants the lender the rights to take the property if the borrower goes into default and does not pay under the terms of the Note. The lender holds title to the property until the borrower has repaid the debt in full.
The Differences
The Note is signed by the people who agree to pay the debt (the people that will be making the mortgage payments). The Deed and the Deed of Trust are signed by those who will own the property that is being mortgaged. Typically in a residential settlement, the signers of the Note and the Deed of Trust are the same, but this is not always the case.
The Note itself has virtually nothing to do with the property. If the borrower does not pay the agreed amount, the lender can sue “under the Note” and obtain remedies for breaching the contract. The Deed of Trust is the document that grants the lender the rights to take the property if the loan is not repaid.
The Deed and the Deed of Trust need to be recorded in the recording office of the property’s county or town, while the Note is returned to the lender.
If you are ready to purchase a home or refinance your own, contact one of our licensed Mortgage Loan Originators today to get started!
Preparing to purchase a home is an exciting time. It is also one of the most important financial decisions you will make in your life. So, as you prepare to take this step, it’s important to do as much research as possible. These tips and strategies will help you ensure a smooth, successful home buying experience.
Get Pre-qualified – A pre-qualification is the process by which a lender reviews your credit and other financial information to determine your eligibility for financing. Not only will this give you a good idea of how much house you can afford, but it will also put sellers at ease. Sellers and Realtors will be more comfortable working with a buyer who has been pre-qualified, because it increases the likelihood that the buyer can get financed quickly.
Hire a Realtor – With a transaction as important as this one, having a professional on your side is a must. The right Realtor can walk you through the home buying process, tell you what you need to know about the neighborhoods you’re interested in, and help you develop a winning strategy when it’s time to put an offer down or win a bid. To learn more about choosing a Realtor, click here.
Stick to Houses in Your Price Range – It may be tempting to look at houses outside of your budget, but it’s better to house hunt within your means. Looking at houses that are in your price range, or even slightly below it, will allow you some flexibility if there is a bidding war, and increase your likelihood of getting financing.
Make a Checklist – Decide ahead of time which home features are most important to you, and make a checklist to take with you when you view homes. Categorize the items on your checklist into essentials and non-essentials. Having a checklist can help you put aside emotional impulses, and choose the home that meets your needs.
Be Flexible – A checklist is important. On the flip side, however, it’s important to know which features you can live without, or add once you purchase your home. You may not find a home with every single item on your checklist; but if some items on your list are negotiable, you may find a home that’s even better than the one you imagined. Check out this list of common buyer turnoffs that don’t have to be deal-breakers.
The home buying process can be stressful, but it should also be enjoyable. By being prepared, and having the right professionals at your side, you can find your dream home, and make this an experience to remember. If you are ready to get started on the path to home ownership, talk to one of our licensed mortgage loan originators today.
Moving into a new home is an exciting experience, and an important life milestone. Whether it’s the first time you’ve ever moved, or if you’ve moved many times before, being unprepared can make it stressful. Here’s a schedule for the month leading up to your move-in date to help you get prepared and stay prepared for this new chapter in your life:
Four Weeks Prior to Move:
Set up a calendar for your move.
Have a garage sale.
Contact a local charity to donate any unneeded furniture.
Gather moving supplies: boxes, tape, rope, etc.
Collect all medical, dentist, and school records.
Collect all financial, tax, and employment documentation that may be needed for your mortgage loan.
Contact your insurance company to transfer your policies (life, auto, homeowners).
Three Weeks Prior to Move:
Arrange a cutoff date and a date for new service with your utility companies (telephone, gas, electric, water, garage, and cable).
Call friends and relatives and let them know you are moving.
Check out voter registration information.
Donate canned goods to a local charity.
Send out change of address forms to newspapers, magazines, and associations.
Notify the post office of your move. Fill out a change of address card.
Review tax deductions on moving expenses.
2 Weeks Prior to Move:
Transfer stocks, bonds, bank accounts, and contents of safety deposit boxes.
Start packing.
Check ALL previous items. You still have time!
1 Week Prior to Move
Clean your refrigerator and let it air out at least 24 hours before moving.
Drain outdoor equipment: water from hoses, propane tanks from barbeque grills, and gas and oil from lawn movers.
Dispose of any aerosol cans, paint, oils, flammable, and/or toxic chemicals. Click here for a list of hazardous household products, and check out these tips on disposing of them safely.
Label items you need to easily access and place them in a separate room or closet.
Arrange for pest control before moving into your new home, especially on new construction.
Moving Day
RELAX!
Remember that items packed last will be unloaded first.
Once everything is out of the house, take one last look through the house: cabinets, closets, behind doors, attics, stairwells, overhead in the garage, outside the home, and any storage sheds.
Congratulations! You’ve successfully moved in. Buying a new house is an exciting accomplishment. Take some time to sit back and enjoy your new home – you’ve earned it.
Moving doesn’t have to be an overwhelming experience. Being well-prepared will help you eliminate stress from the moving process and transition smoothly into your new home. Click here for more moving information and tips.
For a printable version of this checklist, click here.
If you are looking to begin the home-buying process soon, click here to contact one of our Licensed Mortgage Loan Originators today to pre-qualify and begin the home searching process with confidence.
Location: While previously a significant factor when purchasing a home, this time the location of your home needs to be top priority. Take into consideration that driving may not always be an option or even desirable. You’ll want to choose a place that allows you to easily access all the essential places you care about. Your hobbies and interests, such as the beach, golf courses, pools, etc., should be close and have a minimal commute. Cities have public transportation which allows residents to not even need a car. If your friends and family live in rural areas, perhaps moving closer to them might be another option to avoid commuting.
Single-story Homes: If you are thinking about downsizing, now is the time. A single-story home is ideal for older homebuyers. Eventually, going up and down stairs will become troublesome, and there is always the possibility of needing to accommodate a wheelchair or walker. Stairs, even just a few, can make getting around your home more difficult. If you’d like to buy a two-story home, consider having the master bedroom on the first floor. The rooms upstairs can be used for grandchildren or guests. Whichever way you decide to go, plan for the house that will be best for you later, not just what works for you right now.
Space: Luckily, space is a popular feature in many new homes so it shouldn’t be hard to find. “Open” room concept homes allow for your kitchen, living and dining rooms to flow together. You’ll have less clutter and easier navigation. You should also keep an eye out for larger bathrooms and entryways. More importantly, look for extra-wide hallways and doorways. These will accommodate wheelchairs/walkers and you won’t have to avoid or move around tight spots.
Important Amenities: A walk/step-in shower will reduce some of the risks that accompany using a bathtub at an older age. Instead of having to step over the side of a tub, having a small step or no step at all is much safer and wheelchair friendly. A larger shower will also come in handy if a beach seat or railing needs to be added. Ramps into your home are not only a wheelchair/walker friendly accommodation, but removes the risk of falling from carrying anything up or down stairs, such as groceries. Keep an eye out for kitchens with lower counters and easy to access cabinets. Use a 
Property: Consider a yard that will fit your needs fifteen years down the road. While you might be able to cut the grass, pick weeds, rake leaves, and shovel snow now, that might change. Paying someone to do those tasks for you will get more expensive the larger the piece of property, so factor in the additional costs when making a budget.
Pets: Your pet should absolutely go with you wherever you move, however, some places might have specific pet policies. Be sure to check for any restrictions before deciding on a home, especially if you’re thinking about a retirement community or condo. If you are considering a new home in a multiple story building, be prepared to take your pet on an elevator.
Last week, we talked about the second step in the home purchase process: 
When you are ready to purchase your new home or refinance your current one, you will be given a series of documents you need to sign at settlement. Understanding what you are signing is important and it will help ensure that you are making the correct decision. Three important documents to review and understand are the Deed, the Note, and the Deed of Trust.
Preparing to purchase a home is an exciting time. It is also one of the most important financial decisions you will make in your life. So, as you prepare to take this step, it’s important to do as much research as possible. These tips and strategies will help you ensure a smooth, successful home buying experience.