Frequently Asked Questions
What is my first step in moving forward to buy a home and start the process?
Step 1 Find a realtor! (BTW I am right here and ready to help you and be your realtor! Call me today!) Search through Yelp, Zillow, Facebook, etc and interview your realtor. Ask them questions and find out how they do business and how they can help you. It's best to go with your gut on this one.
Step 2 Ask your realtor to refer at least 3 lenders that you can call and interview. Ask your lender what their best rates are, what their closing costs amount to and what they feel they can qualify you for without running your credit first. Once you speak to the lenders and decide on which one to move forward with, they will be able to lead the way from forward. Make sure and ask them to contact your realtor with a preapproval letter and discuss what price range is best for you and your family. Once your decide what purchase is best for your family, you can start home shopping!
Step 3 Home Shopping: Contact your realtor, give them your wish list! This means tell your realtor what your ideal home would be like: number of beds, baths, location, price range, pool or no pool, remodeled home, fixer-upper or new build, etc. When your agent send you a list of homes, pick your favorite ones, go drive by the neighborhoods and make sure the location suits your needs, and then tell your agent to schedule a formal showing.
What might a lender need in order to prequalify my purchase?
1. Income Information: Be prepared to supply your loan representative with pay stubs, tax returns, and W-2s from the previous two years, as well as documents that show additional sources of income (a second job, overtime, commissions and bonuses, interest and dividend income, Social Security payments, VA and retirement benefits, alimony or child support).
2. Asset Information: Your lender will also likely want to see information about any of the other assets you have, aside from your income. This documentation can include bank account statements as well as information about investments you’ve made. If a family member or friend is giving you money, you’ll also want to bring documentation of this information (including a gift letter, which shows the money is not a loan).
3.Personal Information: You’ll need to bring a valid form of identification such as a driver’s license or passport, and you will need to provide your Social Security number for a credit check.
Are closing costs the same as down payment?
They may seem like they are both one of the same, however they are not. When I bought my first home, you should have seen my face when the lender/escrow asked for another check to cover the closing cost. I have no idea. Closing costs are different from the down payment. Your down payment will go towards your purchase, and closing costs cover your fees, taxes, prepaid insurance, etc.
Is my EMD gone if I cancel the purchase contract?
No, as long as you cancel within the contingency time period, your EMD should be returned to you in full.
GET MORE INFORMATION
