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Don LaPlume

The Home Buying Process for Today's Market

Wednesday, February 22, 2012 - Article by: Don LaPlume - Emery Federal Credit Union - Message

Did you know that over 90% of potential home buyers start the process in reverse?

Today I'd like to share the 3 key steps in the home buying process, in proper order. If you are considering a new home purchase there is a series of steps you will want to follow to not only make your home buying successful but also to keep your sanity! So let's get started.Step 1 - You need to pick a lender you feel comfortable with and be pre-approved. So many would be home buyers start looking at homes first. Only to find out they could have purchased more home in their price range or worse, that they do not qualify for the home they just fell in love with.Since this is my part of the transaction I want to prep you. Today's underwriting rules are not what they were 3 years ago. It used to be that if you could fog a mirror you were good to go. The mortgage world has changed and for good reason. When your banker asks for documents, he or she will need them to get your loan done. No matter how tedious or redundant the request seems to be. Please be understanding with them. They really don't want all the paper but they do want to help you get your loan done.To receive a true and complete pre-approval you need to have the following items with you when you meet your banker:

  1. 1 full month of paystubs
  2. 2 full months of bank statement and all asset accounts such as 401K statements IRAs etc. please note you must have all pages with you. So if a bank statement says pages 1-9 you must have pages 1-9 even if some are blank.
  3. The past 2 years of w-2s

There are other items your banker may need to pre-approve you based on your individual situation but these are the basic 3 they can not do without.Step 2 - You now know your price range, the monthly payment you want to stay under, the type of loan you plan to do, ( this is very important as you may qualify for a home loan but the home you are looking at does Not qualify for that loan. More on that later this week.) Now it's time to shop for your new home.Here are your action items for step 2:

  1. Pick a realtor you trust, enjoy spending time with and one who listens to you.
  2. Tell them everything about what you want and need in a home so they can show you homes that fit you.
  3. Be loyal to that Realtor - remember, you just spilled your guts to them so that they can help you. Do you really want to have to do that again and again? Not to mention, they are using their gas, their time and their knowledge to help you. They don't get paid unless you buy your new home with them. So once you pick the right Realtor stay with them.

Step 3 Complete the loan process and close on your new home! To do this justice I am making it a separate blog post for later this week. The key piece I would like to leave you with is to place your banker's phone number in your cell phone. You will have many questions through the process and if you have a good banker who really cares for your success they will do their best to provide answers for you. For more information on these 3 important steps to buying a home in today's market check out our free home buyer university at or you can reach me at 603-543-3700 ext 1. My email is dlaplume@mortgageprofessordon.I'd like to leave you with a quote from Henry Ford, "Coming together is the beginning. Keeping together is progress. Working together is success."Wishing you all my best, Don LaPlume

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