Failure to prepare your home for the upcoming winter months can have dire consequences on your wallet, as well as pose a safety hazard for others. Even those in warmer climates will want to be
14 Important Steps To Obtain Financing For A New Home Purchase In South Jersey
Are you spooked about your ability to obtain financing for a new home purchase in South Jersey? Ease your fears. Follow these 14 important steps to obtain financing for a new home purchase.
1. Order your national credit reports from all 3 credit bureaus: Equifax, Experian, Trans Union. You can get your reports free annually each year at www.annualcreditreport.com.
2. For a small fee, order your FICO credit scores from one or all of the 3 bureaus.
3. If you find any discrepancies on your credit reports, correct them. To obtain financing for a new home purchase without delays, your credit reports must be accurate and up-to-date.
4. Pay off any small debts if possible.
5. Gather the following key documentation to obtain financing for a new home purchase before you begin shopping for financing options:
bank account statements
tax returns for the last two years
two years of IRS filings if you are self-employed
statements from current loans and credit lines
names and addresses of your landlords for the past two years
401(K) funds and other assets
6. Have a rough idea of your current household expenses. Your current household expenses will affect the amount of financing you are able to obtain for a new home purchase. They will affect the price of the house you can afford to finance, too.
7. Allow for saving for home maintenance and repair in your monthly budget. There will most likely be unexpected costs for new appliances, roof repairs and plumbing problems that can quickly drain your pocket book.
8. Before you begin shopping, check calculators to get a good idea of what your monthly mortgage payments would be. To see how your mortgage amount can vary, experiment with different rates and different amounts for a down payment. Experiment with different loans terms (30-year, 15-year, fixed-rate, adjustable-rate) to see how your monthly mortgage payment can vary, too. Most lenders and builders provide monthly mortgage calculators on their websites. Be sure to include taxes and homeowners insurance. Use Bankrate's mortgage calculator.
9. Find out what homes comparable to yours are selling for in your area.
10. Find out how much you’ll pay in closing costs. Bankrate.com's annual closing cost survey will show you what closing costs average in your state.
11. Put your budget down on paper and determine how a house will fit into it. According to Fannie Mae, housing costs should cost no more than 28 percent of your total income. If you spend more than 30 percent, you put yourself at risk of becoming house poor.
12. Call Sam Lepore. Ask him about the local real estate market in South Jersey.
13. Find a lender and get preapproved. You can use Bankrate's mortgage rates tool to find lenders offering the best rates in your area.
14. Lastly, consider getting an FHA loan. If you are a first-time home buyer, and you can't find a bank willing to lend to you, the Federal Housing Administration has a program that insures the mortgages of many first-time homebuyers. Find lenders that work with the FHA.
Obtain financing for a new home purchase in South Jersey before you begin shopping. Financing comes in different shapes and sizes, and it isn't out of your reach. Like Frankenstein, you can navigate the spooky waters of financing one step at a time for a smooth mortgage process. Sam Lepore of Long & Foster Real Estate can help. Don’t let navigating home financing scare you. Give him a call at (856) 497-2506. It’s the fright time to obtain financing for a new home purchase in South Jersey!
Sam Lepore is a Realtor with Keller Williams in Moorestown, NJ. Call him today at 856.297.6827 ....