Buy a home or refinance your mortgage this year

2012 Resolution for Home Buyers and Mortgage shoppers -  fix up your financials

Buy a home or refinance your existing mortgage at historically low rates.

 

It’s no secret that the mortgage lending world is tough out there. Don’t let that stop you from buying a home in 2012. The name of the game is to prepare, prepare, prepare.  Home prices and interest rates are at historic lows. Be ready when the right one comes along. 

• Pull your papers together:
• Gather up: your past two years’ federal tax returns and W-2s; your last two months’ pay stubs; and statements from bank and other asset accounts, like retirement accounts and investment accounts. You might also find it handy to have marriage and divorce certificates on hand, as well as the statements from any credit, auto or student loan accounts you hold.
• Also, start keeping a running file to collect and keep handy new stubs and statements throughout the year; when you find your dream home, your lender will ask you to refresh your application with the latest versions.
• Compile your cash to close: If you’re serious about buying a home this year, you’ve probably already started saving up - or at least know where and how you plan to access your down payment funds. Early this year, meet up with your real estate and mortgage brokers and do a double-check on how much cash you’ll need for your down payment and closing costs to buy the sort of home you’re looking for in a location you’d like.  Don’t make any major credit purchases or money transfers.
• Check with your Realtor or mortgage broker on timing matters around any gift money or money from your own retirement accounts that you plan to use toward your purchase. You might need some lead time in order to draw your own funds, specific documentation of where the monies came from, or a couple of months for the money to sit and ‘season’ in your own accounts before the lender will greenlight the deal; the best practice is to make yourself aware of any such requirements as soon as possible.
• Have your mortgage pro run your credit report. Again, if you’re planning to buy this year, chances are good you’ve already pulled your own reports from the three bureaus. But as you move down the home buying timeline, it’s imperative to get your mortgage broker or banker to pull their versions of your reports, as that what the lender will go by. 

Put this on your to-do list sooner rather than later. If an error or issue arises, you’ll need some time to remediate your report.  Disputing an erroneous entry or derogatory your credit report needs action.  Ask your broker to obtain a Rapid Rescore or find an honest credit restoration company who can leverage consumer law in your favor.  A good place to start? Call Spencer at 415-690-0194

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