House Hunting Checklist For Home Buyers
It’s true that buying your first home can seem like an overwhelming process, but you can help make your journey from house hunter to homeowner a little easier by having the proper documents in order. I’ll walk you through this first time home buyer flowchart that can help answer questions about the kinds of documents you need to have prepared before you apply for a mortgage.
Ok let’s get started. Do you know how much home you can afford? If not, your rent is a good guide to determine your monthly payment. But don’t forget about property taxes, insurance and maintenance costs. Usually housing is 30% of your income.
Once you know how much you can afford, it’s important to think about down payment. If you won’t have 20% down on the home, you can think about using a gift or inheritance or looking to see if you qualify for first time homebuyer grants. If you can’t use these then talk to a lender about your loan options and mortgage insurance.
If you can put 20% down then you won’t have to pay mortgage insurance and then you can perform a credit check. If your credit score is under 680 then consider taking more time to build credit by keeping a low balance on your credit cards and paying your bills on time.
If your score is above 680 and you have more than 3 credit accounts open for over 2 years then it’s time to start gathering your documents. Print out your last two years of tax returns for proof of income as well as two months of bank statements
Be sure to explain any large deposits and even include all blank pages in your paperwork. Once you have all that, it’s time to talk to a lender to see what loan amount you qualify for. After that, you can start shopping for your first home!
There you have it, we hope this first time home buyer flowchart gives you a better understanding of the home buying process. Use this video as a guide for many different factors including establishing affordability, credit scores, down payment information and the proper documentation. Or you can always give me a call at 314-608-0348 to discuss your situation as a first time homebuyer. I’m here to help so contact me today to get started on buying your first home!