Financing

The financial file created earlier will be needed during the financing portion of the home buying process. Lenders will require this information in order to process the loan for your home. The financial folder should include financial statements regarding bank accounts, investments, credit cards, auto loans, recent pay stubs and tax returns from the last 2 years.

When purchasing real estate it is best to already have funds set aside to allocate towards a down payment, closing costs and various expenses such as home inspections. You will also want to try and minimize existing debts like credit cards with high interest rates.

Also keep in mind that lenders prefer their home buyers to have stability within their lives. Career changes, costly purchases and moving money around are not favorable actions during the home buying process. If you must do one of the aforementioned, please consult with your lender first.

If you haven’t selected a lender yet, consider the following when evaluating lenders:

• Do they explain things clearly and respond to your phone calls in a timely manner?
• Are their interest rates, cost and fees competitive to other lenders?
• Do their loan programs suit your credit profile and desired property?
• Do they provide access to a local loan approval committee that fully understands the property you are purchasing?