It snowed today in Hoover Alabama. Most people stayed inside and watched the snow come down in the morning and then went about the rest of their day as planned. It is getting to be that time of year when people start thinking about buying a house and lots of people who were thinking about home ownership last fall decided to wait a little while longer and save up for a bigger down payment. With the new tax credit for first time home buyers available, this is an even better time to think about home ownership. But where to start?
Once you've Saved up money for a Down Payment to Buy A House, Checked Your Credit so there are no glitches, and have a good idea about Where you Want to Live, the next step is to get Pre-Approved by a lender. The key here is Pre-Approved not Pre-Qualified. You want to fill out the lender's application and have them review your credit documentation BEFORE you go and look for that house.
There are hundreds of lenders out there that loan money to purchase homes in Hoover, Al or the greater Birmingham area. I have worked with several great ones and some bad. Some lenders will just ask you a few questions and they tell you - yes you can qualify for a house, but the good ones will want to verify your information before they give you an answer.
If you don't know a lender, get some recommendations from people who work with lenders everyday - such as your friendly realtor. I have several I can recommend. I wouldn't shop for a lender based on rate, I would shop based on service. Most lenders in this area are going to be competitive; you want to make sure they can get you to the closing table on the DATE YOU WRITE IN THE CONTRACT. Give me a call at 821-3312 or e-mail me at http://www.tonibird.com I'll be happy to recommend a few for you to choose from.
When you meet with the lender you will need some financial information, so plan to bring these documents:
Your W-2 forms from last year and your most recent pay stub,
Your last 2 months bank statements,
Any investment accounts you have such as a 401K from work,
The name and address of your current landlord,
Your credit card numbers, the balances and the monthly payment of each,
Information on any other loans you have such as student loans, car loans, etc.
The lender MAY need other information from you, but this will get you started and after they meet with you, they'll let you know if they need anything else. If they ask for other documentation, get it as quickly as possible. Expect them to have you sign a form saying it is OK for them to pull your credit report. Even if you have run your own, they will need to do it to make it official. They will probably charge you a fee for this - as the credit bureau will charge them a fee (even though you can pull one each year for free).
Feel free to ask questions. If you feel the lender is not willing to answer you or is too pushy - then walk away and find another one.
Once you are PreApproved, you'll be ready to shop for your house. You can get started on my website at www.ToniBird.com/listings.asp. Let me know if I can help toni@tonibird.com.
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