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Other Things
to Consider
If
you've been pre-approved, contact your lender to get started on
an appraisal. You don't want to be held up on a house that isn't
worth as much as you thought. Be prepared to provide documentation,
including:
- Valid
driver's license and social security number
- Current
and previous addresses for the last two years
- Last
two pay stubs and last two statements from banks and credit unions
- Last
two checks to your landlord if you're a renter or to your mortgage
company if you're an owner. If you live at home or with a friend
and pay little or no rent, get a letter from your host stating
this
- A
list of your assets, such as cars or other real estate
- A
list of charge accounts, student loans and other outstanding debts,
along with the name and address of your creditors, account numbers
and the balance due on each account
- Self-employed?
Bring your last two tax returns and an up-to-date profit and loss
statement
- If
someone is giving you funds for down payment or closing costs,
get a letter from the donor stating it's a gift that need not
be repaid.
In
general, the mortgage you choose is determined by these key factors:
- Money
Down: The more cash you put into the transaction, the
lower your monthly payment. But remember, loans with as little
as 5% down are widely available and some lenders require even
less.
- Mortgage
Insurance: If you put less than 20% down, your lender
will require you to pay for mortgage insurance to guarantee the
loan.
- Your
Credit: The best rates and terms go to those with solid
credit.
- Time
Frame: Traditional 15- or 30-year fixed loans make sense
if you plan to stay in the home a long time. But if you plan to
move again soon, you might want to consider an adjustable rate
mortgage, which usually has a lower starting rate.
»
Step
1: Getting Started
»
Step 2: Getting Into Financial Shape
»
Step
3: Consider Pre-Approval
»
Step 4: Determining a Price Range
»
Step 5: Looking and Choosing
»
Step
6: Making an Offer
»
Step
7: Getting it Inspected
»
Step 8: Closing the Deal
»
Other Things to Consider
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