Home Buying prep work

Check your credit score and take a good look at your debt. Try to pay down car loans, credit cards and student loans. All of these items are considered a liability and affect the amount of money you will qualify for on a mortgage.

Consider a second job to boost your income. You will need at least a month of pay check stubs at any place of employment when you visit the lender.

Talk to parents, grandparents or other family members to see if anyone would be willing to “gift” you money for a down payment or closing costs. You may not need it, but start asking. A generous parent or grandparent may be saving money for you anyway and this could be the boost you may need to get approved for a mortgage.

Find a mortgage lender.

These days it may be challenging to find a mortgage lender. Look for experience. Find a company that specializes in first time buyers. Ask around. Go to your local government licensing sites, check the Better Business Bureau. If you are comfortable with your banker ask for assistance. Ask real estate agents and “closing” staff at title and closing firms. Many times they know who is on the ball and who is not and can recommend a reputable company.

Make an appointment with your lender

2 forms of ID. One form needs to be a current Social Security card.

2 years of Tax returns

Statements for loans and credit cards

Banking information. Savings, checking; personal and business, IRA accounts.

Based on the information you supply the lender will give you a letter of pre-approval for a mortgage.This letter is essential before you start serious home searching. Memorize the home sale price you are approved for. Ingrain that number into your psyche.Make note of the fact that this approval is based on no change in financial status so do not go out and buy new furniture for your dream home yet.

Find a really good realtor. This person will save you time, money and negotiate on your behalf.  THAT"S ME!!!! mlroettger@yahoo.com  Copyright 2010