Understanding all of your financial options before you begin shopping for a new home is essential to ensure a smooth homebuying process. There's a big difference between how much home you can afford and how much home you want to afford. Make sure you compare and evaluate different financial scenarios to decide what's right for you.
Our agents can explain the different factors that affect the actual costs of owning your new home. For example, if you put down less than 20% of the purchase price you may be required to carry private mortgage insurance (PMI). Compare interest rates and make sure you understand the cost differences (and risks) between a variable and a fixed-rate mortgage. Estimate how long you plan to live in your new home. If you choose a 30-year mortgage over a 15-year mortgage, your monthly payment will be lower but you will pay more interest long-term.
Check your credit report ahead of time with all three of the major reporting companies: Trans-Union, Equifax, and Experian. Report any discrepancies, inaccuracies, or outdated information to the credit bureau.
- Most recent statements from all accounts
- Current paycheck stubs
- W-2s for two years (if self-employed, two years tax returns with schedules)
- Purchase and Sales agreement signed by all parties
- A check for the appraisal, credit report(s), and rate lock
