First Steps in the Homebuying Process
Are you thinking about buying your first home? You may feel overwhelmed or confused about where and how to start. Which steps should you take first? Who do you talk to first? Starting the home buying process doesn’t have to be overwhelming or confusing. At First Ohio Home Finance, our loan officers are here to help you throughout the entire process and walk you through it.
Choosing A Loan Officer
Your home buying process starts by choosing a loan officer that you will work with through this journey. Choosing your loan officer is an important first step on your way to home ownership. At First Ohio Home Finance, our loan officers are licensed by the NMLS and work with multiple lenders. We help you find competitive rates and the mortgage that works best for you. Working with this kind of local licensed loan professional, rather than a bank or credit union, gives you many more options to consider for purchasing your home.
The Importance of Pre-Approval
After selecting a loan officer to work with, the next step is to review your finances to determine how much you can afford in order to get pre-approved. This step is important to do early on in the home buying process and even before you start shopping for a home. Getting pre-approved tells you how much house you can afford, how much your monthly payment will be and how much you’ll pay for taxes and insurance. Since you will know exactly how much you can afford, you can focus your search on homes within your price range. Once you find a home you love and are ready to submit an offer, your offer will be more competitive with a loan pre-approval in hand. Things will also move quicker after an offer has been accepted since you have already gone over most of the financial aspects.
Getting Pre-Approved
Your loan officer will guide you through every step of the application for the pre-approval process. You may be asked to bring in several documents to begin the pre-approval process. Be sure to bring these documents to your pre-approval meeting:
- Photo ID
- Proof of Social Security number (copy of SS card or W2 statement)
- Residence addresses for the past two years
- Copy of green card, if not a U.S. citizen
- Pay stubs (past 30 days)
- Names & addresses of each employer (last two years)
- W-2s (last two years)
- Tax returns: 2-year returns are required for the self-employed
- Three months of statements for bank accounts, mutual funds and investment accounts
- Large deposits: explanation and source of deposit. If a deposit was a gift you need: signed gift letter, copy of gift check and copy of deposit receipt.
- Info needed on all current loans: names, addresses, account numbers, monthly payments and balances (typically found by pulling credit report).
- Credit report irregularities: credit inquiries (last 90 days), late payments, collections, judgments, liens, and charge-offs
- Bankruptcies (if filed within last 7 years): a copy of bankruptcy papers
If you’re ready to take the first step in the homebuying process, give us a call at (888) 818-1850 or fill out an online form. At First Ohio Home Finance, we’re here to help during every step of the mortgage loan process.
