Financing Your Sierra Vista Real Estate

If you are a first time buyer there are so many little details involved in buying a home that it can sometimes feel overwhelming. But with the right information up front, it can make the entire process much more smooth.

The biggest issue when it comes to real estate is how to finance it. Most people don't have a couple hundred thousand in the bank so they finance the home. This is typically done through a bank, credit union or mortgage broker but it can be done with a private lender or owner financing. The latter two can get pretty complicated so we will stick with the more common of the ways to obtain a loan.

 First of all, check out your own finances before letting a lender do it. You don't want any surprises you were not aware of. The best way to do this is to get copies of your credit report and make sure there are no errors in it. Go through it and clean up any mistakes or issues that can cause a problem for lenders. If there is something that has a valid excuse, make notes on all of it so the lender knows you are aware and have handled it.

Once you know your finances, get some actual cash set aside. Yes, you can still buy a home with little to no money down but it can be stressful and when you do get into the house you might not have a penny to do anything with. Make sure you have some funds set aside for costs such as earnest money (1-3% of the purchase price) inspections costs ($300-$800) and any closing costs. Putting money down on the loan saves you in interest rates and mortgage insurance so the higher your down payment is, the better all around.

Once you have all your ducks in a row sit down with the lender of your choice and go over your mortgage options. You might talk with several lenders and choose one you feel comfortable with and one that has the best rates and fees.  You will want to give them all your finance documents such as W-2's, pay stubs, tax returns, bank statements and anything else they may need. Don't be too alarmed at the amount of personal information they need on you; this is a large amount of money they are loaning and they need to be sure of your financial state.

Once they have looked over all your finances, the lender should issue you a letter of approval stating you have been pre-approved for a loan. This is a valuable letter that you present to sellers when submitting an offer. This will show the sellers you are a serious buyer that has done your homework. It can help make the entire process flow more smoothly knowing the financial issues are out of the way.

With these tips in mind, you can set yourself up for home buying success. Whether this is your first or  tenth time buying Sierra Vista homes, it pays to have all the information you can when applying for a loan.

Please contact us today for references and tips on getting your finances in order and speaking to a lender in your area.