Everyone loves tips!  All of us want ideas to make our life as stress free as possible.  So here are a few tips to get you through the homebuying process.   Check back often for new tips.

• First & Foremost, Get Pre-approved.  You can’t buy a home without finding out how much you qualify for.  Think about it this way, would you go to the grocery store without having any money to spend?  Hopefully none of us would go to the store, fill our carts with Lobster & Steak, go to the cashier, then figure out how much money we have.  This is not the normal way to do it.  So get Pre-approved before going to view homes.
• Think about the cost of homeownership.  In addition to the mortgage, there are utilities, light, water, gas & in some cases association fees.  There are also costs to maintain the home such as landscaping & sometimes major or minor repairs that are no longer covered by the landlord 🙂
• Get a home inspection.  A home inspection is very important because you always want to know what your getting into.  Normally you will have 5 business days after your contract is signed to obtain your inspection.  This inspection will cover things such as plumbing,, electrical, roofing, and much more.  You will walk through the home with your inspector normally takes a few hours, but you will have all of your questions answered.  Normally within 24 hours you will have a copy of a full inspection report showing you exactly what needs to be fixed in the home.  You can give this info to your Realtor & if you like have your Realtor negotiate to have the seller pay for these items or at least a percentage of the items at closing.  Some owners are willing to reduce the asking price, while others are willing to repair the items before closing.
• After you are pre-approved Don’t go out and buy a new car!  This can possibly ruin your chances of buying the new home that you have your heart set on!  This can possibly reduce your credit score.  Don’t apply for new things such as credit cards or furniture before you have closed on your new home.
• Organize, Organize, Organize.  Keep everything together if possible.  When your lender calls for something you want to get it to them right away.  Loans can be held up for days or weeks due to missing paperwork.

Here a few things that a lender will look for during the approval process.

• W2 earning statements or 1099 DIV income statements for the last two years

• Federal tax returns for the last two years

• Bank statements for the last few months.

• Recent paycheck stubs

• Proof of other income, such as tips, Social Security payments, etc.

• Proof of investment income

I hope these tips are helpful.  Don’t forget to check back for new tips as you go through the process.