LOVELAND – Things are constantly changing in the real estate industry. Market conditions fluctuate and mortgage qualification criteria get revised. This has certainly been true over the last six months. If you are looking to buy a home in 2016, there are things that you can do to make your life a lot easier when it comes time to buy. Here are a few helpful tips to remember.
Getting your paperwork lined up
Mortgage companies are asking for more documentation these days. After you complete your taxes over these next couple of months, make sure to keep a copy of your tax return on-hand. In fact, look up your tax return from last year as well since you will likely be asked for both. Here are a few other documents that you will need when you actually go to apply for a mortgage:
• Recent 401k Statements
• Recent Bank Statements
• Recent Pay Stubs
Things to avoid
Staying away from certain red-flags will make the pre-approval process easier. Avoid the following.
Making large cash deposits to your bank account.
• Applying for new credit cards or loans.
• Increasing your credit card debt.
• Co-signing loans for other people.
• Making a major job change (i.e. to a completely new occupation).
Staying updated on the market
It may help to stay up to date on the industry. If you are a first time home buyer and have a low down payment, you will be happy to know that FHA recently increased their mortgage limits in markets with rising market prices. Ask a lender for a general estimate of what you might qualify for so that you can start monitoring listings in your area.
As you monitor homes for sale, take a look at what they were listed for and what they sold for. In some markets, homes are selling for much more than asking price. Knowing this will help you better understand what you can afford. Sold information is not always easy to find, so ask your Realtor for help.
Suzanne Plewes is a Broker Associate at RE/MAX Alliance in Loveland. If you have questions regarding real estate, please write to 750 W. Eisenhower Blvd., Loveland, CO 80537, call 970.290.0373 or e-mail [email protected].