Buying my dream home seemed out of reach at the beginning of the year, but I quickly realized that it was more about the fear of the “unknown” than about the actual process. With information at my fingertips and unlimited resources to buying a home, I felt a little overwhelmed trying to accomplish my goal of becoming a first time home buyer.
The process seemed both exciting and also terrifying at the same time, but I knew I needed to end my marathon of rental days behind me and start the investment in my community.
I will say that I had a really great experience working with my lender partly because I purchased a home from Stylecraft Builders. Stylecraft really makes the home buying experience not only special but simple. Through their in-house lender I was able to easily access the financial resources necessary to purchase my first home.
Knowing that this can be intimidating and slightly scary I’m sharing with you a few questions and documents that I prepared before speaking to my lender.
5 Key Questions:
- What loans do I qualify for? As a first time home buyer I decided to maximize this experience by applying for a FHA loan. I will never be a first time home buyer again and the FHA loan fit my needs the best. Ask your lender to put together a few scenarios in a worksheet to visually see the difference between the loans.
- What is the current interest rate?
- When can I lock in the interest rate? Working with Stylecraft Builders, they had a very specific point in their construction that they lock in the interest rate. They will lock in the rate when the counter tops are installed. This is a very unique situation as I am dealing with new construction, so make sure you really understand when the rate is secured.
- Will I pay Private Mortgage Interest (PMI)? Typically if you put down less than 20% of the loan value you will have to pay PMI.
- Can you provide a worksheet on the closing costs and fees – basically how much money will I need to bring to the table during closing?
5 Documents to bring to your lender:
- Drivers License
- Social Security Card
- W-2’s (2 years)
- Bank Statements (2 months)
- Pay Check Stubs (2 months)
If you missed out on the last two blog posts in this home buying series, catch up with the links below and read more details about my home buying experience, including the lessons I’ve learned along the way to inspire you to invest in your community! xx-Jennifer