 gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12376
Location: bloomfield, ct
58.49 Dollars($)
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Posted: Tue Feb 15, 2011 2:15 pm Post subject:
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The most important thing anyone would need to know in order to provide you with information is where you live. Most states in the US have first-time homebuyer programs in place that provide buyers with low down payment requirements, generally favorable interest rates and, in some cases, closing costs assistance.
In order to apply, you'll need pay stubs, W2 forms, tax returns (likely with first-timer programs), bank and retirement account statements, explanations for any credit problems you may have had, evidence of payment of collections, if you had any; possibly more as well, but it depends on the program.
Prequalification means you've told a loan officer that you wish to buy and without verifying any documentation, you've been told that "based on what you've said," you qualify for a mortgage of XXX dollars at XXX interest rate. It's very vague, but then you don't provide any documentation for it.
Preapproval means you've provided income and asset documentation, your credit report has been reviewed, and your ability to make payments based on standards has been assessed. This is far more precise and will allow a seller to have confidence in your ability to qualify for a mortgage.
Rent? The only benefits are minimal maintenance responsibilities and a place to sleep. Buy? Your maintenance responsibilities grow, and the possibility that your home will grow in value is there as well. If you consider your home as an investment as well as where you live, then owning would, we all hope, return something on the investment.
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George M. Akerley
Mortgage Underwriter/Consultant
Word of Excellence- Writing/Editing/Proofreading
860-221-5044
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