Financing

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• Loan Application

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• Northshore Mortgage Options

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FINANCING

Financing a Home Purchase

    Financing a home purchase constitutes one of the largest steps in the home buying process.  Whether you qualify for a loan or not can make the difference between beating a competitive buyer for your dream home, or just putting the deal together.  Sarah and I have outlined a few steps that our research and experience in the Greater Boston Real Estate market indicate to be crucial in the mortgage shopping process, as well as some aspects to expect from the mortgage process.

1) Get Pre-Approved.  Contact a lender to find out what type of loan commitment you might be able to expect.  By obtaining this information, you will know exactly how much you can afford, what percent deposit you can make, and how long a loan might take.  Entering into a negotiation with a pre-approval letter makes your offer much stronger than anyone else competing for the property without this information.  It tells the seller and the agents that you are a qualified buyer ready to make a purchase.

2) Submit a Mortgage Application.  You will need personal, employment, and financial information, as well as legal or technical real estate information from your attorney and REALTOR.  You will need the full names of all the buyers as they appear on title, social security numbers of all buyers listed on the title, present addresses of all buyers going back at least two years, and home and office phone numbers. 

Your employment information is equally important.  Provide your present employer's name, address, and a contact person to whom an employment verification form may be sent.  Provide a written explanation for any gap during a 2 year period.  Give your previous employer's name and address going back two years if not in present job for two years.  You'll need your present salary, as well as year to date pay stub and your last two years' W-2 forms.  If you have variable income, you'll need information on commission, part-time income, bonus, overtime, and/or interest used to qualify.  Supply 2 years signed, federal tax returns and W-2s and/or 1099s. 

Other income information such as rental income, alimony and child support, income from notes held, and retirement, social security, and disability income may be factored as well.  And don't forget bank account names, addresses, account numbers, and balances.  Show the average daily balance for your checking accounts.  Supply to two most recent bank statements of your checking accounts, with the exception of your checking accounts, for which you'll need statements for the past 12 months.

The lender will also ask for information about whether you have owned another home.  Do you have stocks, bonds, or mutual funds.  What types of Life Insurance policies do you own?  Do you own other real estate?  And do you have a sales contract or settlement sheet for your home?  And do you owe any loans, credit card debt, or alimony and child support?

3) Be Ahead of the Game.  The sooner you secure this information with a lender, the faster and stronger your offer to purchase will appear.  Don't hesitate to seek qualification and commitment from a lender. The process can take time, and with interest rates as good as they are, many banks are backed-up with applications.  For an instant loan interview, Click Here!

There are a lot of choices available to you when seeking a mortgage.  Discuss with your lender the most advantageous options to you and the property you intend to acquire.  Click Here for a list of mortgage options and what they mean.

    Contact us with any real estate questions about relocating to Massachusetts.  We am here to help you with all of your real estate needs.  And don't miss my free new listings email service! Just fill out your personal profile to receive information on the latest homes to market as well as articles on finding, financing, and buying a home--absolutely no obligation!