Paving a Smooth Path to Homeownership

Understand the different loan types to figure out which one might be right for you.

Getting Started

Now is the time to find and organize some basic documents before you start looking for a loan. Collect all the information listed below in one spot and you'll be ready to go on the next step.

Document Checklist:

- Name, current address, social security number
- Name(s), and work number(s) of employer(s) for the past two years
- Monthly income for you and your co-borrower (most recent pay stub(s) with year-to-date income) includes bonuses, commissions and overtime income for the past two years (this information is on your tax return)
- If you are self-employed, you will need the last two years' tax returns for the type of business you own: Sole Proprietorship (Schedule C), Partnership (From 1065), or Corporation (Form 1120 or 1120s).
- In addition, the last two years' personal tax returns (including K-1s)
- Documentation to support credit history problems (if applicable), which can be a written explanation of late payments, bankruptcy (petition and discharge papers), defaults, judgments, and/or liens.

Know Your Assets

Coming up with the amount of money you need to secure the home and the loan you want can be a big hurdle for some potential homeowners.
Speaking with one of our loan officers regarding your projected down payment can give you a clear picture on loan options that may work for you.

STEP 2: PRE-APPROVAL

When you find your dream home, you can present the seller with your pre-approved letter, showing them that not only are you serious about buying their house, but you've already been pre-approved for financing. It could make the difference between getting the house you want or watching some other bidder step in with a pre-approved loan and snatch that house away. Pre-approval is good for 90 days and depends on the appropriateness of the property you want to purchase.

Where you live influences every aspect of your daily life. Take your time; think about schools, shopping, traffic, proximity to work, parks, coffee shops, restaurants and the like. 
It helps to know the rules of the neighborhood you are interested in such as covenants, tax rate, safety, zoning and natural hazards. Make a list of all the things you want in a home and talk with a real estate agent who can help you find the home of your dreams.

STEP 4: MAKE AN OFFER

You've found a house you love. It has the perfect living room, or that playroom you've always wanted for kids. But it's not yours, yet. First you have to make an offer, in writing, and submit it to the sellers. This is usually done through your agent and is accompanied by your earnest money, which is a pre-determined amount of money, demonstrating that your offer is “in earnest”. Follow the advice of your agent when deciding how best to make your offer.

Here are examples of some things your offer should include

- The price you're willing to pay
- When you want to move in
- What kind of inspections you'd like to have (structural, electrical, plumbing)
- If your ability to buy the house depends on your ability to get financing (which is taken care of if you're pre-approved by us)
- The amount of time both you and the seller have to make all these things happen (usually 30 to 60 days)
- The seller usually has 24 to 48 hours to consider your offer or make a counteroffer, which means, under the terms you offered, they want to sell you their house, but they want a change.

Inspections

It is always wise to make your offer “contingent on inspection”. That means that your offer isn't really valid until the home has been carefully examined by a qualified home inspector, who is trained to take a critical look at various aspects of the home including

- Foundation
- Plumbing
- Heating and Cooling System
- Electrical System
- Roof
- Windows and Doors
- Siding
- Exterior Grading (to make sure water drains away from house)

Prior to closing you will receive a detailed list of closing costs and how much money you will need to bring to the closing table. To close the deal on your house you will meet with a representative of the escrow company who is handling your loan. Once closing documents are signed and the title is recorded, ownership will transfer to you.

I'm Ready To Get Started

A new home or mortgage rate savings could be just a few clicks away.