Preparing to Purchase

Plan ahead...

If you are planning to purchase a home in the near future, begin now to make certain you'll be ready. In addition to locating and saving the documents listed in our Mortgage Application Document Checklist, you can prepare for the home purchase process by doing the following: 

Start saving!

If you're serious about purchasing a home in the near future, accelerate your savings plan. Demonstrating your ability to save and having extra funds on hand will help you enormously in the approval process. 

Pay all your bills on time

Let's face it, some of us need some work on our bookkeeping. However, the ability to demonstrate that you are diligent about paying your bills on or before the due date is important when applying for a mortgage loan. So be sure to pay those bills on time! It will save you money on late fees too.

Save your pay stubs

Begin saving all the stubs from your pay checks from your employers. If these pay stubs are computer-generated, they can, in many instances be used to verify your income, without having to obtain documentation from your employer. 

Pay your rent by check

Don't pay by cash, because cancelled checks will be an important way to demonstrate that you meet your housing expenses on time. 

Save cancelled checks

If your credit history needs bolstering, the ability to demonstrate on-time payments to utility companies, the telephone company, etc. will be important. 

Save bank statements

Bank statements showing deposits and withdrawals will be needed to demonstrate funds for the downpayment and funds to close. If you can provide lenders with original statements, they may not have to wait for your bank to verify the information when you apply for your mortgage, a process that takes time. 

Order a copy of your credit report

Your mortgage loan officer can help you with this process. By ordering your credit report in advance of your purchase, you will have the opportunity to correct errors on the report or close/satisfy accounts that may present a problem when you are ready to apply for a loan. Too many open accounts can be a detriment, even if you have a zero balance! 

Consider waiting on major purchases

Borderline mortgage applicants may sabotage their own eligibility if they sign on for a large ongoing debt (such as a car loan) just before applying for a mortgage. Your loan officer can answer your questions on this. 

Find a real estate agent you are at ease with

Even if you are still in the exploratory stages, you can ask a real estate agent to provide information on the town in which you are interested. He or she can usually give you information about the schools, taxes, price ranges and town services. If your real estate agent understands that you are working with a mortgage lender, he or she will know that you are a serious buyer and will be happy to invest time in your home search process. This is particularly true if you have been pre-qualified or if you have a pre-approval loan commitment. Once you've found an agent you like, stick with them! Through the multiple listing service, they have access to almost every home listed for sale. 

When you've found a possible home or community that interests you: 
 

  • Inquire with local government or the realtor about possible buyer assistance programs that community may offer (if needed) 

  • Contact the County Assessor to determine taxes and possible special assessments for the property 

  • Possibly contact utility companies to determine an average billing or usage for that residence 

  • Check neighborhood and area amenities, proximity to points of interest, schools, churches, or businesses