The Purchase Loan is a different process altogether.
The key is to ask the right people, the right questions.
20 Personal Specific Questions to ask:
1. Are you being represented by a Realtor? ( Get Names and numbers )
2. Is your new home being represented by a Realtor? (Name and Number?)
3. How soon did you want to accomplish this transaction?
4. How would you rate your credit?
5. Can you document income? ( Verify all sources? )
6. Are you buying this home with a co-buyer/Spouse?
7. Did you want a VA, FHA or conventional Loan? ( FHA requires 3.5% to be own cash!! )
8. Are you a renter now and if so, what are the terms of your current lease?
9. Has all mortgage or rent payments been paid on time for the last 12 months?
10. Are you married and needing FHA ( non borrowing spouse debt added to DTI?)
11. Are you open to see other homes in the area?
12. What is your maximum purchase price and payments you prefer?
13. How much cash do you have in the bank now?
14. Are you hoping to use funds gifted from another person? who? ( Gift funds need to come from acceptable donor!! )
15. Is this home going to be owner occupied, Second Home or non-owner occupied?
16. Are you needing any down payment assistance programs ?
17. Are you a 1st time home buyer?
18. How much of a down payment can you handle?
19. Are you a contingent home buyer? ( need to sell your own home 1st )
20. Have you found an approved buyer and when is your homes Escrow closing?
20 Property Specific Questions to ask:
1. Have you negotiated a purchase price yet?
2. What is the relationship with the seller?
3. Would the seller do any financing for part of the purchase price?
4. Do you have an executed purchase agreement yet?
5. What type of home is it? ( Duplex/PUD/SFR/Condo, detached condo etc…) look up redfin.com!
6. What is the zoning for the subject property? ( Multi family, Commercial etc..)
7. How many rooms, baths and square feet is it?
8. Pre-Owned or new construction? ( If new, who is the builder?) VA requires a soil sample & termite report for new construction
9. Is the home on Public Utilities or septic system?
10. What is the lot size, Acreage, is land generating cash i.e. Farming ?
11. Does the home any need repairs prior to move in date? ( FHA needs all repairs to be done PTC )
12. Would the seller be willing to contribute any cash toward the closing costs?
13. What is the lowest price the seller would accept ?
14. Do you know how much the seller owes on the home? ( Pull a property profile )
15. How long has the seller owned the property?
16. Is there an HOA and can you get a copy of the master HO6 policy if so ?
17. Do you know who you will use to Insure your new home?
18. Do you know the appraised value?
19. Who should I have the appraiser contact for entrance to the home?
20. What is the anticipated Escrow close date ?
Cut & Paste
Here are the items that are typically requested when applying for a loan to purchase a home.
- Valid driver’s license or other government-issued photo identification.
- Bank/asset statements for the last two months on all checking, savings, stock, mutual funds, IRA, or other liquid asset accounts.
- Pay stubs for the last 30 days.
- W-2 forms for the past two years.
- If receiving SSI or Pension Income, ( need awards letter and 2 years 1099’s)
- Federal tax returns for the past two years, including all schedules.
- If self-employed or you own more than 25% of a business, copies of business tax returns for the past two years, including all schedules.
- Credit documentation pertaining to any credit disputes.
- For other real estate owned, need loan information, monthly payment, and any rent collected.
- Sales Contract, if available.
- Landlord/mortgage company information for past two years.
- Certificate of Eligibility and DD-214 or Statement of Service, if applying for a VA loan.
- If previous bankruptcy–A copy of entire bankruptcy papers with a copy of discharge.
- If applying jointly, each borrower must provide their date of birth,social security number, and the same documentation noted above.
- A copy of the settlement statement if you sold property in the last three months.
- Any recent divorces will require a full copy of the divorce decree from the courts.
- Any recent child support or alimony orders, modifications and or removals will require all documentation from county office.