Financing Your Home

Tips to Setting up Your Financing

Most people don't have the actual cash needed to purchase a home out right so the next best thing is obtaining a home loan. This can be done several ways and there are literally hundreds of options and programs that are designed to fit each person. But there are some steps to take to ensure you start down the road to homeownership correctly.

1. Examine your own finances first

Make sure you take a good look at where you stand financially. This means more then simply balancing your checkbook. Get a copy of your credit report and correct any mistakes, clear up any late issues and get a good handle on your credit score. Once this is done, then you can sit with a lender to discuss your options further.

2. Get a pre-approval letter

Once you know about how much you have in the bank and you have a good idea of your financial snapshot, sit down with a lender you trust and get a copy of a pre-approval letter. A lender can be a bank, credit union, mortgage broker or private lender but having a letter stating your finances have been looked over and you can actually afford a home can set you up for offer approval sucess.

This letter you will present to seller when submitting an offer. It shows the sellers you are a serious buyer that have done the homework necessary to buy a home. If you are offering less than asking price and are approved for more then you are offering, ask your lender to customize the letter to state exactly how much you are offering.

3. Have some funds set aside for various reasons

You will need some out of pocket cash for buying a home. Even if you go with a zero down loan, having earnest money and inspection costs available makes a world of difference. If you are barely scraping by when getting into a house, it may not be the best idea for you. Once you own a home there are more than just the mortgage payments to take into consideration.

4. Do your part in making the closing happen smoothly.

Lenders will need various documents from you such as W-2's, tax information, pay stubs, etc. Having this in hand ahead of the game will put you in a better position to close on time. Plus getting your home owners insurance set up will also help in the long run.

With these simple steps you can set yourself up for home buying sucess. Please contact me anytime for more information on this, finding an escrow company or any Bothell homes or Woodinville homes for sale.