There’s a common misconception among hopeful homebuyers that one must save 10-20% for a down payment before they can even dream of owning a home. In today’s market, that’s simply not true. In fact, there are several mortgage options available that require little or no down payment.
While you should always conduct thorough research before financing a home, consider an FHA loan or a VA loan. Some financial institutions will even finance a conventional loan with as little as 3% down. Work with your financial institution to determine what type of loan you qualify for and to determine which option is the best for you.
Once you’ve decided what type of loan you will get, it’s time to get pre-approved. Pre-approval gives you negotiating power when you find your dream home. When applying for pre-approval, you’ll need:
· 30 days of paystubs
· 2 years of W2 statements
· Most recent 30 day asset statement
Finally, when you’ve moved into the purchase period, begin shopping for homeowner’s insurance. It’s required to secure a home loan and can save you time if you get it early in the process.
Mortgage experts will give you one final and important tip: do not make any large purchases on credit or apply for new credit once you’ve started the mortgage process. Doing so can quickly set you back and cause significant delays as you approach your closing date. Unsure about your purchase? Ask your loan officer before you buy.
For more information about the types of mortgages that are available to you, visit: www.centrisfcu.org/mortgages.