Are You Ready?
Here Are Some Important Steps to Take Before Buying a House:
Prequalify Yourself
Have you determined how much you feel comfortable spending each month for a house payment? Do you have enough income to cover the cost of a mortgage payment and your other monthly debts? Use our partner, Balance, to help you determine how much you can afford.
Maintain Stable Employment or Income
Have you worked at least six months in your current job and built a work history with two or more years of stable employment in the same field? Do you have other stable sources of income?
Establish a Good Credit Rating
Does your credit history show that you pay your financial obligations in a timely way? Have you been paying off excess debt and bringing all your other payments to current status? It is a good idea to check your credit report so that you can see what your creditors have reported on you. You’re entitled to a free copy of your credit report every year. For more information:
http://www.balancepro.net/education/publications/yourfreecr.html
http://www.annualcreditreport.com
Establish a Good Rental History
Do you rent a house or apartment? Or do you live rent-free with friends or relatives? A two-year rental history is an important indicator of your ability to make a monthly mortgage payment. If you rent from relatives, pay them with a check each month. If you don’t pay rent, establish a savings account and make regular monthly deposits equivalent to your proposed mortgage payment.
Start Saving for Your Home
Have you started saving some money? Even if you qualify for 100% financing, you will need money that you have saved to pay for closing costs and moving expenses.
Put your paperwork together
To prepare for obtaining a loan, you will need the following items:
· Your most recent bank statements
· Your most recent pay stubs and W2s from the last two years.
· Names, addresses, phone and fax numbers of your landlords and employers--must cover the last two years
· Driver’s license(s) and social security card(s)
· Your checkbook for your application fees
· Credit reference letters from your utilities (for customers with no traditional credit)
· Copy of divorce decree or separation papers (if applicable)
· Child Support Enforcement printout of child support payments received over the past year (if applicable)
Contact Self-Help
Fill out our quick prequalification form, and submit it online to the Self-Help office nearest you. One of our home loan officers will contact you to discuss your particular situation and determine whether we can help you buy a home of your own!
Our Partner, Balance
Self-Help is pleased to offer the services of Balance, a free and confidential financial management resource. Their trained counselors are available 8am-11pm Monday-Thursday, 8am-8pm Friday, and 11am-8pm Saturday, to answer your financial questions. Click here or call 1-888-456-2227 to learn more about Balance. Services include housing education, debt management, credit report review, and answers to general financial questions.
