Zahra Zoglauer's Blog
Few people can save up the cash required to buy a house. If you're contemplating buying your first house, your first stop will probably be your local bank to inquire about a mortgage. When you talk to the mortgage officer, they will ask you to provide several documents.
Various documents will be required at different stages of the application process, from pre-qualification to the final closing of the real estate deal.
What you need for mortgage pre-qualification
Getting pre-qualified for a home loan allows you to gauge how much you are eligible to borrow based on your income. It will help you be more realistic when shopping for a home and frees your real estate agent to scan through listings with confidence. Homeowners or listing agents will give your offer priority if backed by a pre-qualification letter. It is comparable to the bank vouching for you, saying you have the power to make the purchase. In order to become pre-qualified, your bank will ask for:
- Your full names and the names any co-buyer
- Your current address
- Your net worth
- Sources of income
- The estimated annual income of your household
- The estimated yearly household debt expenses
What you need for mortgage pre-approval
Pre-qualification is optional, though it comes with several advantages and literally costs you nothing to do. Once you're through with that step, you can move on to the actual mortgage application. The first step of that is to apply for pre-approval by filling the full mortgage application form. Below are some of the critical bits of information you will need to supply for this:
- All of your checking and savings bank account statements for the past few months
- Asset statements for items you will use as security for the loan
- Your current residential address
- Address history over the past two years
- Addresses and names of your landlords over the past two years
- Paycheck stubs over the past few months
- W-2 or I-9 forms for each of the past two years from your employer
- Two years of tax returns if you're self-employed
After submitting this information, there will be a waiting period at the end of which your application will be approved or rejected. If their response is positive, you can begin the process of closing the deal.
Contact your local bank and find out what you need to do to get a loan.
When buying a home, there are so many things to check out before the big signing day. Inspecting a home should be at the top of the list. Home inspections identify problems that may not be obvious to the naked eye. Here are some important things to consider when having your new home inspected.
There are different home inspection processes to choose from and the age of your home will help to determine which one to get.
Start by first finding a professional and certified home inspector. Check out your online resources such as Angie’s List and the home adviser website to find one close to you. Realtors also have recommendations of inspectors so make sure to ask them to help you locate one.
Once you have found your certified home inspector, they would be able to identify with you what type of inspection your home would need. Most homes need a general or residential inspection. General inspections include the structure, exterior, roof, electrical, plumbing, HVAC, interior, insulation, and ventilation. After completing the inspection, the final report helps the buyers decide on any needed repairs before purchasing. To get the most information out of the inspection, make sure to ask questions about the findings. Having these answers on hand will enable you to negotiate with the sellers about including those needed repairs. Besides, it is essential to know the structural condition of your home.
Another home inspection to consider is the termite/wood destroying organism inspection. This type of inspection would account for structural damage caused by wood boring insects. For older homes, these insects may cause problems in the future. Generally, this type of inspection comes at an additional cost.
If you are buying a home that is older than 30 years or more, consider doing a lead-based paint inspection. This type of inspection came about after the federal government banned the use of lead-based paint. If you that lead-based paint may have been used in your home, hire a certified lead abatement contractor to inspect your home.
Another type of inspection to consider is gas and chemicals. A mitigation contractor can test for methane gas or radon and identify ways to remove it. There are additional charges for this type of inspection. Overall, getting a home inspection is an integral part of becoming a homeowner. Make sure to use the resources provided to you and your realtor for any questions or concerns.