New Year's Resolutions for the Future Homebuyer

Are you looking to buy or invest in a home in 2016? Here are a few New Year’s Resolutions you can make to help get you to the closing table this year.

ESTABLISH AND MAINTAIN GOOD CREDIT

Establishing and maintaining good credit plays a vital role in the home buying process. First, start out by reviewing your credit history and determine which areas you need to improve on. Set a monthly spending limit and stick to it! A monthly spending limit will help you stay organized and will ensure you won’t overspend. Note, it is important to pay your bills on time to improve your credit. You can get a free copy of your credit report anytime at https://www.annualcreditreport.com/index.action.

SAVE FOR A DOWN-PAYMENT 

Very few people have the means to immediately pay off their home and therefore must save for a down payment. A down payment is a percentage of your home’s purchase price that you pay upfront. To ensure you have money set aside, establish a monthly budget. Start by creating a spreadsheet that shows your monthly gross income and your expenses for each month.  Set time aside each month to review your budget and spending habits and determine where you can cut costs.

GET PREAPPROVED BY A LOAN OFFICER & DETERMINE WHAT YOU CAN AFFORD

It’s imperative to know what you can afford before you start your home search. Contact your mortgage lender to find out what you can afford and determine what monthly payment is right for you. Getting pre-approved upfront will help you make sure you start your search in the right direction. While applying for your mortgage be sure to have your supporting documentation together to help ease the process of approval along. Below are standard items needed for the mortgage approval process.

1. Copies of Federal Tax Returns (1040s) for the previous two years. All pages. (2012 if using VHDA)
2. Copies of all W-2’s for the previous two years. Please provide local street addresses. (No PO Box addresses for employers).
3. Copies of current pay stubs covering the past 30 days, preferably with YTD earnings being reported.
4. Copies of most recent bank statements covering the past sixty days for all checking, savings, stocks, bonds, CDs, IRAs, 401Ks, mutual funds, etc.- all pages.

**For more information on Monarch’s preapproval process click here.**

MOST IMPORTANTLY DO NOT MAKE THESE MISTAKES! 

• Quit your job or get another job unless it is the same line of work and for equal or more money. Please call your loan officer if this should occur.
• Allow anyone to make an inquiry on your credit report.
• Purchase an automobile.
• Purchase any other real estate.
• Any large purchase appliances, furniture, etc.

** Todd McLaughlin, loan officer at Monarch Mortgage, is a contributor to The Wealth Development Network** 

Contact Todd @ 757-869-7782 or tmclaughlin@monarchmortgage.com

www.monarchmortgage.com

Equal Housing Lender