The Home Buying Process

Now is the time to find and organize some basic documents before you start looking for a loan. Collect all the information listed below in one spot and you'll be ready to go on the next step.

Here's What You Need:

• Name, current address, social security number
• Name(s), and work number(s) of employer(s) for the past two years
• Monthly income for you and your co-borrower (most recent pay stub(s) with year-to-date income) includes bonuses, commissions and overtime income for the past two years (this information is on your tax return)
• If you are self-employed, you will need the last two years' tax returns for the type of business you own: Sole Proprietorship (Schedule C), Partnership (From 1065), or Corporation (Form 1120 or 1120s). In addition, the last two years' personal tax returns (including K-1s)
• Documentation to support credit history problems (if applicable), which can be a written explanation of late payments, bankruptcy (petition and discharge papers), defaults, judgments, and/or liens
• As part of closing, we will have to verify all funds that you receive; so it's a good idea to get together any documents that will verify proof of receipt or deposit for funds, like gifts and trust accounts

Getting your nest egg together for a down payment is probably the biggest hurdle for many first-time home buyers. You may already be worth more than you realize.

When calculating your assets, be sure to include ALL of the following sources:

• All checking and savings accounts
• Stock, bonds, stock options, 401k value
• 401K loan
• Gifts from family

Your bottom line just might be better than you think. Know your assets. It's the first step in coming up with the amount of money you need to secure your interest in the home and the loan you want.

What if it doesn't add up to the right amount? Don't give up hope. There are ways to make it work.

Here are a few ideas for you:

1. Look for a loan that requires less money down?  There are several options, just keep looking
2. Think about getting Private Mortgage Insurance (PMI) which:
   • Allows for a lower down payment
   • Lenders (like us!) like it because it protects us in case you default on the loan
   • You can pay for it on a monthly basis
   • You can drop it once you reach 20% equity
3. Talk to one of our loan representatives for other loan options and ask about down payment assistance.