Many of you may have a list of resolutions that look something like this:

  • Work out three times a week
  • Eat healthier
  • Spend more time with family

​​If buying a house in 2012 is on your list of resolutions, then we have another resolution to add:

  • FIX UP FINANCIALS SO THAT I CAN BUY A HOUSE

With lending practices growing tighter, we have some tips for how you can come prepared when it is time to buy a house. 

  • As you’re preparing your 2011 paperwork for tax season, set aside the paperwork necessary to get the home buying process started.  This includes items such as your past two years’ federal tax returns and W-2s; pay stubs from the last two months, and bank statements and statements from other accounts (such as investment and retirement accounts).  In some cases, it is also helpful to have documents such as marriage and divorce certificates readily available as well as any statements from student or auto loans and credit cards that you hold.
  • Begin keeping a running file of your new pay stubs and bank statements.  When you are ready to buy, your lender will want the most updated versions of all of these documents. 
  • Continue saving up your cash to close.  You’ve probably already begun saving up—or you have a plan ready to access a down payment.  Prior to the home buying process, meet with your broker and your agent and double-check how much cash you will need for a down payment and closing costs for the price range you are shopping.
  • Make yourself aware of time requirements for “sitting money.”  In other words, prior to your home purchase, some lenders like to see the money sitting in an account for some time, or they require specific documentation outlining how the money appeared in the accounts.  Be aware of these requirements and make sure that your money has been sitting long enough where it needs to sit.
  • If you are planning to buy this year, you’ve probably already checked your credit report, but have your broker or banker pull it again because this is the report your lender will use to qualify you for a loan.  Pulling it ahead of time allows you the opportunity to check it for errors and issues and take action to correct any issues that may be present.

If you or anyone you know is planning on purchasing a home in 2012, give us a call.  We’d be honored to assist you or those you know in the home buying process!

Committed to helping you Buy. Sell. Live. SMART!

Seth & Alyce

​

Information courtesy of:

“4 Real Estate Resolutions for 2012.”  Real Estate Reality Check: Tara-Nicholle Nelson’s Blog. Ed. Trulia. 05 Jan. 2012. http://www.trulia.com/blog/taranelson/2012/01/4_real_estate_resolutions_for_2012?ecampaign=cnews201201A&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2012%2F01%2F4_real_estate_resolutions_for_2012.