1ST TIME HOME BUYERS QUESTION?

Question

Hello everyone my name is Mia. Me and my boyfriend are in the process of purchasing our first home. If anyone may have some helpful information about 1st time buying of homes please feel free to email me with any helpful information like which areas are marketable for future resale or even necessites for the the house because i cant posiibly remember everything but hey some one might remind me of something i may have forgotten about, and also what buyers look for in purchasing a house (that will be helpful for when we decided to move). We are both college graduates me with my Associates in Criminal Justice and my boyfriend with is Bachelors in Business we have no children we are just tryna start our lives. All ideas will be greatly appreciated. thanks mia 08/28/2008

Answer 1

When you apply for a home loan, your lending manager will need certain information and documents from you. These will help clarify how much money you can borrow and make the approval process faster and easier.

Your income

The first thing we need to do is to understand how much you earn. Try and find as much of the following as possible:

    * A recent tax assessment

    * Current records of your salary and other income

    * Your employment history

    * A statement of service from your current employer

    * Proof of identity like a passport or drivers licence

    * Details of your current and previous addresses

    * Bank account statements for the past 12 months

    * Details of your current assets (things you own) and liabilities (things you owe)

Your costs

After checking your documents we'll calculate how much you can borrow. This is based on your surplus income after your regular costs have been deducted.

It might be helpful to write all your living costs down and add them up. Include things such as:

    * Bills (electricity, gas, telephone)

    * School expenses

    * Credit card interest

    * Car running costs

    * Food

    * Insurance

Approving your loan

We'll help you complete a loan application based on your needs. Approval of your loan will take into account:

    * Your ability to make the payments and service the loan

    * The impact on you if there is an interest rate rise in the future to ensure you don't borrow more than you can afford

    * Stability of your employment and income

    * Your credit history and savings history

    * The value and type of property you want to buy