So you have spent the last few years building up your credit score and saving money to purchase your first, maybe second home. Well with interest rates at a 15 year low at 3.65% with good credit and 5-10% down, plus home values less than they were 5 years ago, you are able to get more for your money in the current Real Estate market especially here in Southwest Missouri.
So now what? First getting in contact with a lender is key. Whether it is a local bank or mortgage broker you need them to run your credit score and find out your debt to income ratio in order to figure out what price range of home you are able to afford. If you areunable to find the one that fits your needs call one of our Realtors at Murney Associates, Realtors and they can recommend up to 3 lenders to help in your search.
Here are some items from some of our local lenders on what you need in order a home.
- At least two months worth of paycheck stubs or if your self employed 2 years of personal and business tax returns.
- All monthly debt itemized.
- 2 months of bank statements from all accounts.
- If selling a current home or it you have sold one in the last 30 days your lender wiill need your signed settlement statement.
- If in the process or recently been through a divorce a copy of the signed divorce decree must be provided.
- If you are receiving a money from a family member to help in the down payment a gift letter must be presented.
- If you are pulling money out of a retirement account or if you have received any money from inheritance or life insurance policy you must provide documentation up to 30 days in advance.
These are just some of the main items that your lender will require. Key thing is all lenders need to keep tabs on your personal money trail throughout the buying process. Once you are approved for a loan and a contract on a home has been submitted to the lender you have 45-90 days to close in order to hold your interest rate in place.
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