Need financing? Get qualified first!
When buying a new home, being prepared is your best asset. Even before you start looking for homes, the most important first step you can take is to qualify for the financing that you will need. Getting qualified not only tells you what kind of buying power you have up front, it also tells a seller that you have come to the table prepared—with your financing in place—and your offer will be stronger for it. Being qualified also helps make the buying process run much smoother by narrowing your price range and helping you decide which amenities are the most important to you.
Chuck Olson & Associates can put you in touch with many area lenders that can walk you through the process and help you find the best loan for your needs. Going into the process prepared means you don’t waste time looking at properties that are undervalued for you, but it also saves you from falling in love with a home that is beyond your means.
Below is a checklist to guide you through the prequalification process. It will help you get organized and be prepared for when you meet with a lender for the first time.
For all applications, bring:
- The name and address of every employer that each borrower has had during the last two years. (W-2 forms from each employer and your last two paycheck stubs from your current job may be required.)
- A list of all account numbers for your savings and checking accounts, IRAs, 401(k)or Keogh plans and verification of any other investments such as real estate, stocks, bonds, or money market accounts. Please be prepared to provide the last two monthly statements for each applicable account.
- A list of all your debts and creditors, including all your credit cards and the account numbers.
- Complete addresses for all landlords or mortgage holders, financial institutions and creditors.
- Residence addresses for each of the borrowers for the last two years.
- If you are using Social Security, disability or pension income as a basis for repayment, a copy of a recent check or award certificate from the issuing agency.
- If you are divorced or separted, a copy of your divorce decree or separation agreement and evidence of any income or obligation.
- Copy of driver's license of each borrower (for FHA only).
- Copies of your last two years' federal income tax returns if you are self-employed, seasonally employed, work for various employers through a trade union, have business-related expenses, receive any commission or incentive income have rental property, or have a 25% or more ownership interest in the company you work for. In some cases, you may be asked for a financial statement and a year-to-date profit/loss statement. Three year's tax returns needed in all cases for WHEDA loans.
If you are purchasing a home bring:
- Legible copy of the signed purchase agreement.
- Seller's condition report.
- Seller's name and phone number.
- Information on how to contact the current occupants, so the appraiser can make an appointment to view the property.
If you are building a new home bring:
- A copy of the signed construction contract between you and the builder.
- Specifications
- Full cost breakdown
- Full set of detailed plans
- Directions to the site, if it is a rural property
- Copy of accepted offer to purchase for the land, or deed to the property and title policy if it is already owned.
If you are refinancing bring:
- Abstract or copy of your title policy
If you are applying for a Wisconsin VA mortgage loan bring:
- Your Wisconsin Department of Veterans Affairs (WDVA) Certificate of Eligibility or your DD-214 discharge paper.
If you are applying for a VA mortgage loan bring:
- Your VA Certificate of Eligibility or your DD-214 discharge paper.
