Financing Your New Home
Owning your own home is the American Dream. The home buying process can seem complicated, but if you take things step-by-step, you will soon be holding the keys to your own Crown Communities home! The first step is to determine how much you can afford. What you can afford depends on your income, credit rating, current monthly expenses, down payment and the current interest rate. Most homebuyers purchase homes that cost between 1.5 to 2.5 times their annual income. Of course, this figure can vary due to market prices in your area. In general, your mortgage payment cannot exceed approximately 28-29% of your gross monthly income. Your total debt payments (car payments, credit card payments, etc., plus the monthly mortgage amount) can’t exceed approximately 36-40% of your gross monthly income. These ratios will depend on the type of mortgage you apply for. Selecting a lender is one of the most important steps you will take in your home buying process. Using a preferred lender can save thousands of dollars and assure a smooth loan process. We currently have five preferred lenders that we work with to help you finance your new home. Our preferred lenders have special programs that include, but may not be limited to, paid closing cost packages.
Mortgage Checklist
Be Prepared
When you are ready to apply for your home loan, please be prepared to provide the following information and property documentation to your loan officer:
- For Home Purchase Loans: Sales contract with original signatures along with a copy of any earnest money check paid for deposit towards the home purchase.
- Residency: If you have been renting within the last two years:
a. Complete address
b. Landlord information (Name, address, and phone) - Employment: Name(s), address(es), and phone numbers of all employers for the past two years.
- Relocation: Copy of employer’s relocation agreement.
- Income:
a. Past two years W-2 or 1099 forms.
b. Past two years tax returns for any persons who are self-employed, commissioned, or using bonus or investment income to qualify, and a year-to-date profit and loss statement.
c. Last 30 days period of pay stubs (including bonus and/or commission pay). - Current Liabilities:
a. Current balance and minimum monthly payments.
b. If recently paid off, then a copy of the payoff statement. - Divorce or Separated Persons: Complete, signed divorce petition, recorded final decree, and/or separation agreement.
- Rental Properties: Copies of current leases and tax returns.
- VA Loans: Copy of dd214′s and certificate of eligibility.
WHAT TO DO WHEN YOU CAN’T FIND REQUIRED EXHIBITS:
Lost Bank Statements
Request a verification letter from your bank on their letterhead, signed by a Bank Official. The verification letter should verify all name(s) on the account, account number, date the account was opened, current balance and a two (2) month average balance.
Lost W-2′s
Your employer is required to keep copies of W-2 forms for seven (7) consecutive years. Request duplicate copies from your employer.
Lost HUD-1 Closing Settlement Statement from Sale of Previous Real Estate
Request a copy of the closing statement from the closing agent (Attorney and/or Title Company) that closed the previous sale.
Lost Pay Stubs
Request from your employer a duplicate copy of your paystubs or a payroll printout for the most current 30 days. If your employer does not issue paystubs, obtain a copy of the payroll ledger and cancelled checks for the most current 30 days. In the case of employee bonuses, overtime or commissions, obtain a signed letter from your employer on company letterhead. This letter should verify the actual amount of commissions, overtime and/or bonuses paid to you for the most current and consecutive two-year period.
Lost Divorce Decree
Request a copy from the Attorney that handled your divorce or obtain a copy from the County in which the paperwork was filed.
Information provided by our Preferred Lender partner, Opteum Financial Services.