The list below is a general list that will help you prepare for the purchase of your new home.
Timeframe:
In most cases we can close in 30 days or less.
Costs:
Understanding these three types of cost will help you budget effectively for buying a home.
1. Down payment is the initial, upfront payment you make when purchasing a home. It is typically a percentage of the home's purchase price, ranging from 3% to 20% or more, depending on the type of loan and your financial situation. A larger down payment can reduce your monthly mortgage payments and potentially eliminate the need for private mortgage insurance (PMI).
2. Closing costs are the fees and expenses required to finalize the mortgage and transfer ownership of the property. These costs usually range from 2% to 5% of the loan amount and include various charges such as appraisal fees, title insurance fees, and lender fees.
3. Prepaids are upfront payments made at closing for expenses you will incur as a homeowner. These typically include the first year of homeowner’s insurance, property taxes, and mortgage interest from the closing date to the end of the month. Additionally, an initial deposit for an escrow account to cover future insurance and tax payments may be required.
Information that you will need:
1. Past 2 years of employment history
2. Past 2 years of residence history
3. Any current balances and payments for installment and/or revolving debts
4. Date of birth and social security number for all who will be applying
Documents that you will need:
1. Purchase agreement
2. Earnest money deposit receipt
3. W-2 for the previous 2 years
4. Paystubs covering 30 days period
5. 2 most recent bank statements
6. Homeowners' insurance agent information
7. Photo ID
Self Employed Borrowers Only:
1. Personal tax returns for the previous 2 years
2. Business tax returns for the previous 2 years
3. Business licenses covering a 2 year period
4. Year-to-date profit and loss statement (P&L)
If Applicable:
1. Final divoce decree or seperation agreement
2. Proof of child support or alimony receipt and continuance
3. Proof of child or alimony payment requirements
4. Full bankruptcy filing or proof of discharge
5. Copy of a pemanent resident card or visa
6. Copy of SSN card
7. Disability award letter
8. SSI award letters
9. Pension award letter