Finance Roll

Unless you are fortunate enough to have the financial resources to purchase a home for cash you will definitely need to apply and obtain a home mortgage in order to purchase a home. Following are 5 steps in the home mortgage process.

1. Gather and organize all your financial records and any supporting documents. At the very least you will be required to provide to a home mortgage company the following: · State and local tax returns for the past two years

· Recent credit card statements

· Banking and brokerage statements for the past three months

· Title of any vehicles you own

· Pay stubs for the past month

· IRA, 401(K), and other investment statements for the past three months

2. Shopping and comparing home mortgage offers is critical in the home purchasing process. Just a small difference in the interest rate can save you thousands of dollars over the years. There are many different types of home loans available. Contact a local lender to get the ball rolling. They can answer any questions you may have and direct you in the right direction on what type of home mortgage to apply for.

3. Get pre-approved or pre-qualified for a home loan. This step is important because it lets you know how much a lender is willing to lend you for a home loan. In other words, it tells you how much home you are able to afford. Knowing this keeps you focused on homes that are in your price range. Another important reason getting pre-approved is important is it builds confidence, not only in you but the seller. It shows that you are serious about purchasing a home and it can greatly increase the time it takes to close on a home.

4. Once you have shopped and compared home mortgage lenders you need to apply for the loan that best meets your needs. Choose a loan officer and stay in contact with them throughout the application process. It is likely they will need additional information before approving your home loan.

5. Once the loan is approved and you have found the home which you want to purchase you need to close on the home loan. This requires about 2 weeks or longer to complete. Read the documentation thoroughly and have all your questions answered before you sign the papers.