Navigating Mortgages
Sunday’s issue of the Daily Press highlighted key components to remember when qualifying to purchase a home:
Pay less mortgage insurance – Talk to your lender about different loan types, downpayment requirements, and private mortgage insurance choices. Selecting the right products to fit your budget can help save money.- Prequalification – Pick a lender who offers a thorough prequalification process. By offering information upfront, this helps avoid hiccups down the road.
- Maintain credit – Keep financials steady between prequalification and closing. Changes to credit (large purchases or balances) can influence rates and fees.
- Get organized – Start collected documents such as W-2’s, bank statements, and tax returns.
- Don’t move money around – This includes transferring money from checking to savings. Save it for after closing.
- Prepare to write letters – Lenders look under every rock and need explanations for any oddities.
- Get your gift funds early – If a family member plans to help with the downpayment through gift funds, make sure it’s deposited 2 months prior to contacting a lender for preapproval.
- Plan ahead if self employed – If you are self employed, anticipate stricter lender guidelines. Be prepared to provide 2 years of tax records and employment history.
Lenders can help guide you through these hurdles and explain the prequalification/closing process in details. For a list of reputable lenders in Hampton Roads, contact me today!
Hampton Roads Real-e-statement is written by Alyssa Godwin, a Realtor with Liz Moore and Associates. For questions regarding buying or selling contact Alyssa at 757-329-6161 or alyssagodwin@lizmoore.com. You can also find Alyssa on Facebook or on the web at www.lizmoore.com/alyssagodwin.