Rates are still in the 3’s so right now is the time for Indianapolis families to purchase their first home. First-time home buyers, there are some things that you need to know about before you get started.
Check Number One:
Get your finances in order.
Holy cow, this is important for everyone, but it’s MASSIVE for new home buyers. If you come to us deep in debt, with no money in the bank, and a terrible credit score, you’re not going to be happy. If you pay down your debt, save some money, and get that credit score up, you’ll get those awesome rates that we’re always talking about. Frankly, this is just good advice for everyone.
Check Number Two:
Have all of your paperwork ready
When you’re applying for a mortgage, you absolutely, positively need to have your paperwork ready to roll when you call. Think of it this way: your mortgage application is a puzzle. We need all of the pieces to complete the picture. When you don’t bring in all of the paperwork, and I mean all of the paperwork, it could delay your application.
Here’s a partial checklist of what to have handy:
- Paycheck Stubs
- Bank Documents
- Investment Documents
- Tax Documents
- Profit Statements (Only if self-employed)
- Proof of income from rental properties
- Proof that a gift is not a loan
- 12 months of canceled rent checks and bank statements
- Divorce decree
- Proof of age of children in child support is involved
- Bankruptcy discharge paperwork
Remember, this isn’t a comprehensive list. Bring in anything that shows money that you made, or debt that you’ve accrued. That’s what matters here in the paperwork. And for the love of Pete, don’t change anything on your forms. It sounds like common sense, but it’s more common than you think, and its fraud.
Check Number Three:
Call us before you shop
This one is a LOT easier. People call us all of the time, trying to get loans on homes that are WAY outside of their price range. I have never understood this. Would you go shopping without knowing how much money you had? No? Then why would you want to shop for a house that you may not be able to get financing for? If you call us FIRST, before you talk to a real estate agent, we can tell you EXACTLY what you’ll be able to afford on your mortgage from us. We work up your options, and give you a hard number to make an offer with.
Check Number Four:
Get that budget set
Know what you can afford monthly for a mortgage? Think again. There are tons of fees associated with owning a home that you may not have in mind. Most people roll these into the loan, but know before you go into the loan what exactly you can afford before you make that offer. If you have a mortgage that is stretching your monthly budget, look at a smaller payment. Don’t over-extend yourself just because rates are low. Make sure that you always have a buffer built into your budget before you sign up.
Those are just a few of the ways that Indy first time home buyers can get ready for their very first home purchase, the biggest purchase of their lives. Contact us today at The Home Loan Expert and we will get you qualified for the lowest interest rate on the mortgage that you need.
Call us in Indianapolis at (317) 550-1515 or visit www.thehomeloanexpert.com to apply online today. Nobody makes it easier to get the lowest rate on your mortgage than The Home Loan Expert.