"Why does it seem SO hard when applying for a mortgage?" I am asked this on a regular basis! Let's break down the process into three important things to know. Applying for a mortgage can be a lot of work but it doesn't have to be stressful or difficult.Read More
Ready to buy a home? Preapproval is the first thing you'll need to get in order, but even before that, there are some things you need to know! Take a look at our mortgage preapproval guide and make sure you follow this set of steps to ensure that you are as prepared as you need to be before you start looking at homes!
1. Review your credit report.
2. If there are any issues on your credit report that do not look correct, dispute them right away!
3. Locate your last two years of tax returns and proof of income (W2s or pay stubs), or if you are self-employed, you will need to provide your year to date profit and loss statement. You'll need to repeat this step for anyone else who will be on the mortgage loan, as well.
4. Prepare to have your down payment funds and any closing costs you will be responsible for ready in the bank, and plan to keep it safe from being spent during the transaction!
5. If you are receiving any funds from relatives or as a gift, you will need to be prepared to provide an explanation letter to your mortgage company.
6. If you are a first time homebuyer and have been renting, ask your landlord for a referral letter and gather your recent rent payment receipts to show you have paid on time.
7. You will need to gather some other documents, such as divorce papers, personal identification documents, etc.
8. Income documentation will need to be provided, including all forms (Social Security, alimony, any government assistance, child support, etc.). In addition, any and all retirement accounts or IRAs will need to have proof provided, as well as any stock markets investments or money market accounts.
9. Be prepared to explain any past financial situations such as bankruptcy. You will be requested to provide a written explanation of the situation.
10. No matter what you do, do NOT:
- Apply for new credit, even if it's a small clothing store credit card!
- Make large purchases.
- Close any credit cards.
When you are preapproved initially, your mortgage lender is approving you based on your credit scores at the time. If you have any changes to your credit score, it can impact your ability to purchase your dream home.
Once you have completed all of these steps, congratulations on receiving your preapproval! It is very smart to shop around and discover who will offer the best rates!
Need to talk with a lender you can trust? Message us, we have a short list of some really amazing lenders and loan officers!
Congratulations! You've been pre-approved for a mortgage!! Now what?
- Keep the process moving by responding to your loan officers’ requests for documents ASAP!
- Make decisions as soon as possible.
- Keep your Realtor informed during the process (!!!)
- Relay questions or concerns AS they develop.
- Continue to make all of your rent or mortgage payments on time.
- Stay current on all other accounts, including utilities, credit cards, etc.
- Continue to work your normal work schedule with no unplanned time off. If you have planned vacation time, be sure to notify your lending / Realtor team.
- Do not open any new accounts or charge large amounts.
- Be prepared to explain any large deposits in your bank accounts.
After you have been pre-approved for your mortgage:
- DO NOT make any major purchases (car, boat, jewelry, furniture, appliances, etc.).
- DO NOT apply for any new credit (even if it says you are preapproved or “xxx days same as cash”).
- DO NOT pay off charges or collections (unless directed by your loan officer to do so).
- DO NOT make any changes to your credit profile.
- DO NOT change bank accounts.
- DO NOT make unusual deposits into your bank accounts or move money around from one account to another.
Are you in the market for a new home? Do you need to speak with a trusted loan officer? Check out our trusted loan officers here: 8th & Home Lenders
Do you know the definition of first-time homebuyer? Did you know you can qualify to be a first time homebuyer even if you've purchased before? Simply moving to a new state can qualify you as a first time homebuyer!
VHDA’s First Time Home Buying programs are truly a breath of fresh air!
Did you know that:
- a First Time Homebuyer by definition is someone who hasn’t had a mortgage in 36 months!
- in “Targeted VHDA Areas” you don’t have to be a first time homebuyer at all!
- the VHDA offers 100% loan options for buyers!
- the VHDA offers a 3% grant to help with the down payment of a loan!
- the VHDA program works with all eligible buyers to make sure they understand how to balance their finances.
Qualified buyers may receive up to 3 percent of the purchase price, to help with the down payment on their first home.
Buyers must have household incomes at or below program limits. Down Payment Assistance Grant may be used with only the following VHDA purchase programs: Conventional, FHA and Fannie Mae. Additionally, grant funds may not be used in combination with other down payment assistance resources (including FHA Plus). Finally, the down payment assistance grant has no repayment (with no note or deed of trust).
VHDA's first mortgage must be locked on or after March 12, 2015 and the funds (available on a first-come, first-served basis) must be allocated by September 30, 2015.
As a Certified Licensed VHDA Instructor and Originator, Joe Sable's knowledge can unlock the door to your new home! Contact him directly for more information about this program and more!
Senior Loan Officer, NMLS# 1090019
8521 Leesburg Pike, Suite 275, Vienna, VA 22182
Apply Online: https://www.swbcmortgage.com/joesable
And ... if you're in the market for a new home to purchase with your VHDA program loan, take a look at this beauty:
To learn more about this listing, visit I Saw A Sign