Step 1 – Getting Started


getting-startedHere is what you must have to get started looking for a home

  • A job, or income of some kind
  • A Pre-Qualification Letter of approval from a bank or mortgage company – or provable cash on hand to pay cash for the property
  • A credit score of at least 640 (check Credit Karma if you don’t know)
  • Cash for closing costs and down payment (unless you are using a zero down program)
  • Earnest money – at least $1000 or 1% of the purchase price. Earnest money is cash that you will deposit with the brokerage that writes the offer. They will put it in their trust account and it will be used at closing to offset either your down payment or closing costs, or will be refunded to you if you have 0 down, or closing costs paid by the seller.

Click here to view a copy of the loan application.

It’s very important to get pre-qualified with a lender to make sure you are looking in the right price range for your new home. It’s quite disappointing to be sure that you can afford $400,000 and find out you only qualify for $140,000! We work with several lenders and have good relationships with our local banks, mortgage companies and several “on-line” lenders. Click here for a list of lenders who have a proven track record with us, but do this prequalification process first….it will help. (Link to Preferred Lender List)

Getting pre-qualified is easier than you think. In fact, you don’t even have to show up at the bank or mortgage company anymore. On Line applications are really easy. Most of the local lenders have on line applications. Check out these links below for some of my preferred lenders.

Many people prefer the one on one advantages of meeting with your loan officer, so making an appointment with any of our preferred lenders is always encouraged.

They will need pay stubs, last 2 years’ taxes and probably some bank statements. See? Not difficult at all! All things that are at your fingertips!

Your lender will pull your credit and you must have a credit score of 640 and above to qualify. There are some income based programs that will allow 620, but you would need to discuss this with the lender. A good place to “precheck” your credit score is, it’s free and you can keep track of how your score changes. This is a little different than a mortgage credit score, but you can get an idea of where you’re at. This site also gives you ideas on how to increase your score – sometimes, it’s very simple.

Key Takeaways:

  • Choose a lender
  • Apply for a loan
  • Get a letter of approval or a 90% letter