Buying a house is a highly involved process.
Finding the one you want is the easiest part.
What follows is a mound of paperwork and formalities that can really stress you out.
If you go into the process prepared you will be better equipped to handle any bumps in the road and ensure a smoother process overall.
You will first want to gather all of your essential documents.
This includes, paycheck stubs, checking and savings account info, tax info from the past 2 years, investment paperwork, 401k documentation and any other relevant financial forms.
The bank wants each cent accounted for.
Even if you receive a gift or personal loan to help offset the cost of your home purchase that will also factor in to how you are evaluated for a loan.
Each bank is different, but if you have all of these things handy you won't need to hunt them down when it's crunch time.
Another important piece of the puzzle is your credit report.
The bank will closely review your credit history and score to evaluate what type of loan program they will offer you.
Did you know that 3 out of 4 credit reports contain errors? Those mistakes can negatively affect your score and prevent you from getting the loan amount or interest rate you deserve.
If you don't review your credit report prior to applying for a loan or pre-qualification you are running that risk.
Checking your credit report is free and it only takes a few minutes, but it can save you big money when it comes to buying a house.