Tips on Preparing to Get Approved for a Home Loan by Lakeland TN 38002 Real Estate Expert Chris Griffith with First National Realty

Tips on Preparing to Get Approved for a Home Loan by Lakeland TN 38002 Real Estate Expert Chris Griffith with First National Realty

 

When you decide to Buy a home for the first time be prepared in advance. These are tips to consider before applying for a home loan.

 

1. Speak with a Bank/Mortgage Company to see who you feel comfortable with - do not allow anyone to run your credit until you are ready. Also, when you are ready and you want to compare narrow it down to one or two lenders and then choose. 

 

2. Be prepared for the downpayment. FHA (First Time Home Buyers Loan) will require a 3.5% down payment. For Example on a sales price of $200,000 then you would be required to have $7000 (Seven Thousand Dollars) for your downpayment. This does NOT include the closing costs/prepaids for lenders fee(s),attorney Fee(s), etc. BUT, usually you may ask the seller(s) to contribute, if possible, to your closing costs and Prepiads in your offer. This may be part of the negotiation process. 

 

Conventional Loans Require 5% of the sale price of the property and if looking to purchase a second home then 20% will be required for the downpayment.  

 

3. Be prepared to submit to your lender your last 2 years W-2's, Most recent pay check stubs, Bank statement(s) including Checking and savings account, etc.. This will be paperwork needed to be approved in order to prove your income and where the money is coming from for your down payment.  

 

4. Do not Buy major items prior to closing!! You need to purchase your home before buying a new car, furniture, etc. Credit scores and debt to income ratio is crucial!  You will need a minimum of 620 credit score depending on the lenders. Contact your lender for requirements.

 A good Real Estate Agent will Help you through the process and usually have good contacts 

For more information on Lakeland TN homes for sale, mortgage questions and selling  your home for more money contact local Lakeland TN Real Estate Expert Chris Griffith with First National Realty 901-461-5590 or EmailChris@FirstNationalRealty.com

 Visit: http://www.CGriffithRealEstate.com

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