BUY A HOUSE
HOME FUNDING STEPS
TO QUICK AND EASY APPROVALS
Contrary to conventional wisdom, it is not overly difficult to obtain mortgage approval in current times. In fact, the opposite is often true. Take these 10 easy steps to ensure quick and easy approval when you are ready to shop for your dream home:
We will obtain a free credit report for you and evaluate your credit situation. Often there are inexpensive and easy opportunities to raise your credit score that Patriot Home Funding’s lending experts can share with you, which will ultimately save you money long term due to lower rates and fees.
You will need to furnish your most recent bank, brokerage, and retirement account statements. Be prepared to document every deposit going into your accounts
You will need to furnish your most recent 30 days of paystubs, two years of federal income tax returns with all schedules, two years W-2’s and/or 1099’s, and if you are self-employed, corporate returns and current profit and loss statement. If you receive social security, disability, or pension income, we will need copies of your most recent awards letters.
Be prepared to document your most recent 12 months rental history with canceled rent checks and your landlord contact information.
Your will need to document and explain any adverse credit issues and explain why they won’t happen again. If you have experienced a bankruptcy in the past 7 years we will need a copy of the bankruptcy discharge and list of creditors. If you have experienced a short sale we will need a copy of the HUD-1 settlement statement or closing disclosure from the short sale. If you have experienced a foreclosure we will need to know the address of the property so we can obtain the date of the certificate of title to ensure sufficient time has passed so you qualify.
You will need to furnish your addresses and landlord information for most recent two years, as well as your most recent two year employment history, including dates employed, job titles, and earnings.
We will need legible copies of your driver’s license, social security card, and (if applicable) a copy of your green card and/or any other visa documentation.
If you are a veteran, we will need a copy of your DD-214, as well as any VA benefits you receive, like VA pension or disability.
Finally, we will need to know the ages and income of all household members. Some loan programs, like USDA Rural Guaranty and certain forms of down payment assistance, are based on household income and family size
DO’S & DON’TS OF HOME BUYING
Here are some tips all home buyers MUST follow. They may seem like common sense but buyers can sometimes forget the basics with all the excitement surrounding the purchase of their new home. In the past 30+ years of helping clients buy homes, we have seen buyers who saw their home loan turned down, and their dream shattered a few days before closing because they had bought furniture for their new home before it actually became their home!
These buyers were NOT our clients, but it always hurts when we hear of transactions falling apart for reasons that could have been avoided. These tips are part of the buyer packet we give all of our clients when we first meet and we always stress that once they get pre-approved and the process started, they cannot do anything that might affect their credit!
- Don’t change jobs, become self-employed, or quit your job.
- Don’t buy a car, truck, or van (you may be living in it!)
- Don’t DISPUTE ANYTHING on your credit report!!!! Any current disputes have to be removed.
- Don’t use credit cards excessively or let your accounts fall behind.
- Don’t spend the monies you have set aside for closing.
- Don’t omit debts or liabilities from your loan application.
- Don’t buy furniture or open ANY new credit accounts!
- Don’t originate any inquiries on your credit.
- Don’t make large deposits without first checking with your loan officer & NO CASH DEPOSITS EVER!
- Don’t change bank accounts.
- Don’t co-sign a loan for anyone.
- Don’t schedule a day off for closing until I have told you a closing date.
- Don’t turn on utilities until after loan has closed and FUNDED.
- Don’t schedule movers or rent a U-Haul until your file has been officially CLEAR TO CLOSE and closing has been confirmed in writing by your loan officer.
- Do disclose all properties and land owned. (Free and clear, inheritance, or has a current lien on property)
If you are in the process of buying a home, remember that your credit must not change or be affected in any way until you actually sign the paperwork, the loan funds, and you get possession of your new home. Lenders will not only look into your credit when you first get pre-approved, they will check it again (and sometimes again & again) before they let you sign the mortgage. If you want to buy new furniture for your home or change jobs, just be patient. There will always be lots of time to do this after the closing!