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What to Expect when Buying a Home

First lets talk about out of Pocket Expenses…

  • Earnest Money Deposit – a good rule of thumb is 1% of the purchase price
  • Inspection – cost will vary based on sq. footage and location – average range $500 to $700
  • Appraisal – cost will vary depending on the property type – current average $750 to $1000
  • Pre-paid – this could include pre paid property taxes, lender fees, title fees, etc.
  • Down payment -amount will vary depending on your loan type

Next lets discuss the Dos and Dont’s of Purchasing a Home.

DO Get Pre-Approved

  • Most current pay stubs for every job, last 3 years’ federal tax returns (all pages & schedules), W-2’s and 1099’s, all other income documentation (Profit & Loss statements, Corporate tax returns…)
  • Front and back of your driver’s license
  • Last 2 months Checking/Savings statements for all accounts (all pages)
  • Most recent asset statements, including bank, brokerage, mutual funds, & retirement accounts
  • Employment history for 2 years including phone numbers for HR Dept., and dates of employment
  • Insurance Information (agent name, company, contact information)
  • Identify current debt, including creditor’s name, monthly payment & balance
  • Information on any (current/pending) derogatory credit, judgments or liens
  • Current address and length of time there (if you have been there less than 2 years we will request history for 2 years)
  • Name/address/phone of Landlord(s) for past 12 months

DONT…

  • Quit or change jobs
  • Buy ANYTHING on credit (furniture, car, appliances, clothing) without consulting with me
  • Increase current credit balances by using  your credit cards 
  • Open or apply for any new credit accounts
  • Dispute any items on your credit report
  • Spend ANY of your savings that we have documented on your bank statements (buy anything, pay anything off)
  • Co-Sign for ANYONE
  • Enter into any legal proceedings (divorce, lawsuit, bankruptcy, etc.)
  • Make an offer on a home without being pre-approved by your lender 
  • Make any cosmetic or structural changes to the property
  • Forget to make your payments on time