Q: I am interested in buying my first home and feel overwhelmed.
I have been looking through the Internet for information on how to get started but I don´t know what I can qualify for.
- Nick, Newport Beach
A: The first thing you will find helpful and, in the long run, time-saving is to talk to a lender very openly about your financial situation. They will need to know the amount of funds you have on hand, or if you have money from a relative, that these funds can be verified.
The lender will ask for the following, so it would be a good idea to have them ready:
Two to three months worth of bank statements, two of your most recent pay stubs, W-2s for the last two years or copies of tax returns, information on your debts (including student loans).
The lender will run a credit report on you and of course the higher the score, the easier it will be to qualify for the better loan programs available.
The pre-approval process is well worth the effort in that it not only lets you know what price range you should be looking in when it comes to starting your home search, but also makes you a stronger buyer since a lender has looked over your financial information and can state this to your prospective seller.
