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Tips for Staying on Top of Your Documents If You Are Purchasing a Home
While purchasing a home is exciting, staying on top of all your paperwork is not as enthralling. If that’s something you don’t look forward to, then see the tips below on how to get your documentation ready for safekeeping.
Staying on top of your budget
Knowing your budget is an excellent point to start with when purchasing a home. This may require continuous revision and tweaking of your budget to reduce your expenses and increase your savings so you are more prepared financially for when the time comes.
You’ll need to show proof of your income
Your proof of income is necessary when purchasing a home, as it gives the financial lender solid proof that you are able to afford the property in the first place. Therefore, be sure to get your bank statements, tax returns, proof of employment, and any other documentation that would work in your favor when applying for a mortgage.
What mortgage should you apply for?
Speaking of mortgages, you might not be eligible for the first one you come across as your credit score, your current income, the type of employment you are employed in, and how much you are asking to borrow will all influence the type of mortgage you can qualify for. As such, be sure to know your options (use a mortgage broker if necessary) to help you reach an accurate conclusion regarding this.
What is your debt status?
Depending on how much debt you owe, such as student loans, spousal support, or anything else you might owe on credit, your financial lender will want to know more about these obligations so they can be sure you’ll be able to afford a mortgage on top of this all.
Make sure you have a pre-approval letter in hand
A pre-approval letter will go a long way in helping to secure a property with an agent or seller, as this gives them proof that everything checks out from a financial standpoint to get the purchasing part of the process rolling.
The loan estimate document
You need to keep this document safe and ready for constant review to ensure you know what you’re getting into from a loan perspective. A loan estimate document can also help you qualify for the right mortgage. What’s more, it will also give you an overview of what each mortgage type will cost, covering essential details such as closing costs, tax, and insurance rates, as well as any penalties that may be incurred due to late payments.
Keeping everything in order
Regarding keeping all this important documentation in order, use a system that works for you. However, if you happen to be stuck in this area, then why not digitize your documents to ensure that you can access this information online when you need to?
Staying on top of what you need to do and what you need to look out for in terms of researching your mortgage options will save you a lot of time and energy at the end of the day. This should also make the home buyers’ process a lot easier and less stressful to deal with overall.
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Article by Katie Conroy
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