Here's an easy way to understand the financial steps you'll need to take to guide you towards your new home. With Coldwell Banker agent Greg Marthaler, nothing is too complicated.
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Calculate your budget.
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Apply for a home loan/application.
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Lender begins processing application.
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Lender provides booklet of estimated closing and related costs.
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Lending Institution requests an appraisal of home, a credit report and verification of employment and assets.
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Estimate of your loan costs in form of initial Truth in Lending Disclosure Statement.
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Lender evaluates the application and approves the loan.
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Search begins - Agent shows you multiple listings.
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You find the house you want.
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You make an offer.
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Lender disburses funds to closing agent.
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Sign closing documents and loan is funded.
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Appropriate documents are recorded at county recorder's office.
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The home is sold and it's YOURS!.
When you apply for a Home Loan, you will need to furnish information regarding your income, expenses and obligations. To save time, have the following items available for each borrower:
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Two most recent pay stubs.
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W-2s for the last two years.
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Federal tax returns for the last two years.
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Last two months bank statements.
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Long-term debt information ( credit cards, child support, auto loans, installment debt, etc. )
Of course, a lender will only lend you money if they're sure your credit is strong and they're confident you have the ability to pay them back. If your credit report is good, then you have an excellent chance of obtaining a home loan. If not, then you must take the appropriate steps to improve your credit rating.
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Begin to pay your bills on time and in full
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Only use two to four credit cards so that you can keep track of them and do not spend more then your budget
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Keep a separate checking and savings account
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Keep the same job for a few years, the longer you stay at a job, the better
Once you have been Pre-Approved for a home loan, the lender has given you a commitment to support your new purchase. This is different from being Pre-Qualified which is simply an estimate of what you can afford.
Click on the "Calculators" button on the left top so see how much you can afford!