While you're isolating at home, there are things you can do to help buy a home now or in the near future. Instead of spending time surfing the internet looking at homes, do the groundwork necessary to be able to purchase the home that you find.
There's a lot of documentation necessary to qualify for a mortgage and to be approved. This part of the home buying process can be done in advance, long before you even start looking at homes much less finding the one that you want. A good first step to assemble all the documents you'll need for pre-approval:
Assemble all documents to make a pre-approval
Photo ID
Two months current pay stubs
Last two years' W2s
Complete copies of checking and savings statements for the last three months
Copies of statements for IRAs, 401k, savings, CDs, money market funds, etc.
Employment history for the last two years with addresses
Proof of commissioned or bonus income
Residency history for the last two years with addresses and contacts
Assets for a down payment, closing costs, and reserves; must provide a paper trail
If self-employed, you need the last two years tax returns, current profit, and loss statement and balance sheet; a copy of partnership/corporate tax returns for previous two years if you own more than 25% of the company
FHA requires a driver's license and social security card
VA requires original certificate of eligibility and DD214
Other things may be required such as previous bankruptcy, divorce decree
Getting pre-approved gives you confidence. You'll know how much you can borrow. This helps you know you're looking at the right homes for you. The pre-approval process will also allow you to find the best loan (rate, term, and type). All of these steps put you in a position to close quickly.
If using a gift as a down payment, construct your gift letter. The info that must be included is:
The donor's relationship to the borrower
A statement that the dollar amount is a gift and not a loan
A statement that no repayment is required
Signed and dated by the donor and borrower
Include all contact information
Next, you can build your home buying team. You'll need:
A Realtor® -- This person will coordinate the efforts of the other team members to make the transaction move smoothly.
A Lender -- Consider a trusted professional you can meet with face-to-face
Title company -- Guaranteeing the title and closing on time is important
Inspector -- More than a flashlight and a clipboard, an inspector will help you uncover any potential problems or things to watch out for before purchasing your home.
Your agent can recommend these professionals based on their experience and having worked with them in the purchase and sales of other homes.
If you have questions or would like to start the process, give us a call.