JENNIFER A KAUFFMAN JAKSF buyers
Documents for a Loan 1) W-2’s 2) Current pay stubs 3) 2 years of Federal Tax Returns 3) K-’s if any partnerships 4) Partnership returns 5) Miscellaneous Income 6) Source of down payment Your debt-to-income ratio is the main factor in determining how much a lender will lend you. DEBT-TO-INCOME RATIO + Mortgage (P&I) + Property Taxes + Home Owners Insurance + Minimum Payments = Gross Monthly Income Max allowed is between 40% - 50% Your income plays an important part in just how much the lender will give you for a loan. - All documented sources can be used. - 75% of rental income can be used.
Know your credit score - You can check your credit report at a number of places such as: www.myfico.com. Make sure your credit report is accurate. Take some time before you are ready to purchase that their are no mistakes on your credit report. You may have to spend some time cleaning it up. Get Pre-Approved. It is important to a lender or mortgage broke before you even start to look at properties. You need to know what you can afford and if you find a property that interests you a seller will not even consider your offer unless you have a pre-approval letter. Get the source of your down payment lined-up. 1) Generally, borrower needs 15% of there own funds for their down payment. 2) Down payments can be borrowed but a “gift letter” is required. 3) If you have the funds from a family member or friend in your account for more than 2 months it will no longer be considered a gift. You will need to have addition cash for closing costs. You will need roughly 1.5% of your purchase price besides your down payment. In some cases 3% of this can be financed. Check before making any changes in your debt. Now is not the time to make major changes in your debt. Don’t go out and buy a new car or furnish your new home. If you can, wait until the transaction is complete. Jennifer and your lender will help you determine what kind of loan is best for you and your goals. HOW TO FINANCE YOUR PROPERTY
Plan-a-head | Do you financial homework before throwing yourself in the housing market.
MARKET ANALYSIS Would you like a free Market Analysis of your property?

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CLOSINGCOSTS

For a break down on the various costs you will be required to pay at closing.