The first step in the buying a home is to find out if you qualify for a home loan and how much of a home you can afford.
A lot of first time buyers skip this part and in many cases this leads to disappointments. Why?
They start looking at homes and start to dream of the perfect home. They start to imagine their family living there, they see the furniture they're going to buy and many other things they are wishing for, so then when they finally get to the nuts and bolts they find out that they don't qualify because the home they were dreaming about is beyond their budget and they are crushed.
The absolute first step, is to find out what your credit score is or FICO score. You can get your free credit report at CreditKarma.com
If your credit is over 580 your next step is to fill out a loan application with a lender of your choice. The lender will need a list of paperwork from you so once you have your FICO score you can start gathering these items that are listed here:
1. Pay Stubs
2. W-2 for the last 2 years
3. Income Tax Returns for the last 2 Years
4. Bank Statements
5. Self Employed: Profit and Loss Statement
6. Gift letter paper trail
7. Rental: 12 months of canceled checks
8. Others might need: Child support, bankruptcy discharged papers and whatever else the lender will need to process the loan.
By doing all of this ahead of time you will help speed up the loan process so that you can purchase your first home and you will not be disappointed.
These are just the first 2 steps in the purchasing your first home process. For more advice please feel free to contacts us. We would be happy to help.
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