Answers To All Your Questions
HOW CAN I PREPARE FOR A HOME PURCHASE?
1) Avoid making any large credit card purchases - the added debt could impact your ability to qualify for a loan.
2) Manange all outstanding accounts carefully and avoid missing payments.
3) Contact creditors immediately if you have a concern about your ability to make payments on time.
4) Save money so you will have a financial cushion in case of an emergency.
CAN I GET PRE-APPROVED FOR A HOME PURCHASE LOAN BEFORE I FIND MY PROPERTY?
Yes. A loan pre-approval takes the pre-qualification process several steps further. A few more questions will need to be answered on your application. You will be required to provide All American Mortgage Corporation with documentation of your income and assets. This documentation may include, but is not limited to, a credit report, your current pay check stubs, most recent W2's, bank statements and possibly complete tax returns with all schedules.
SHOULD I CHECK MY OWN CREDIT?
If you have never seen a copy of your credit report, you should definitely order a 3-in-1 credit report, which includes your credit report from TransUnion, Equifax and Experian. The three national credit bureaus do not communicate with each other, so you have three credit histories on file. It is your total responsibility to make sure your credit histories are accurate. For peace of mind, order a 3-in-1 credit report today. The Federal Trade Commission website www.ftc.gov/bcp/conline/pubs/credit/freereports.htm provides all of the contact information you need to run a free credit report. The website that is recommended to run the report is www.annualcreditreport.com. There may be a fee when ordering your reports. We can assist you with your credit and help answer any questions you may have.
Do you actually know who has had previous access to your credit information? Do you know if the information they saw was accurate? Previous studies have shown that up to 70% of all credit reports contain some type of error, 29% of those errors were considered serious, like false delinquencies and judgements that did not belong to that individual.
Before you start shopping for a home loan, you should take a look at your credit reports before the mortgage companies do. If there are errors on any of your credit reports, your loan request may not get approved. All errors, if any, need to be corrected before you submit an application for any type of loan.
HOW DO I KNOW HOW MUCH HOUSE I CAN AFFORD?
Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.
WHAT ARE THE STEPS TO BUYING A HOUSE?
If you are buying or refinancing a home -
1. If you are salaried: provide two years W-2 and one month of paystubs OR If you are self-employed: Provide two years tax returns and a YTD profit and loss statement.
2. If you own rental property, please provide rental agreements and two years tax returns.
3. Provide recent copies of any stock brokerage or IRA/401K accounts that you may have.
4. If applicable, provide a copy of divorce decree.
5. Please provide the contact information (or a copy) of your Homeowners Insurance.
6. If you are not a US citizen, provide us with a copy of your green card (front and back) or, if you are NOT a permanenet resident provide us with your H-1 or L-1 Visa.
resident provide us with your H-1 or L-1 Visa.
7. Please provide a copy of your driver's license