TIPS FOR MARYLAND HOMEBUYERS # 1 ASSETS-BANK STATEMENTS
For at least 3 months PRIOR to getting a preapproval:
1. NO OVERDRAFTS-Spend only what you have, no more!
Overdrafts or Insufficients funds show an underwriter that you are not responsible with your money and makes them think that you won't be able to make your payments. Keep a close eye on your accounts and stay within your budget.
2. CUT BACK OR STOP FRIVILOUS SPENDING!
Budgeting is one of the keys to affording the home that you want. Don't miss out on purchasing your home because you stopped for coffee or lunch every day. Do you need those jeans or shoes now or can they wait? Is that long weekend at the beach more important that your new home? Buying a home is not just about the down payment and the closing costs. No matter how "Move-In Ready" a home may be, there are going to be things that you will want to do to make it YOURS. Those things cost money.
3. DOCUMENT ALL LARGE DEPOSITS
If you have deposits into any of the accounts that you will be using for down payment and closing costs that are not direct (e.g tax refunds, payroll, etc.) over $500 they will need to be documented. It will be important to KEEP ALL RECEIPTS, sales slips, transfers and deposit slips.
4. MINIMIZE TRANSFERS BETWEEN ACCOUNTS
Every large item that is transferred in and out of accounts will need to be documented with the bank statements. If you are transferring between accounts, you will need to provide all statements of all accounts noted in the last 2 months (possibly 3).
5. SAVE AS MUCH AS YOU CAN-Plan for expenses, maintenance/repairs After closing there will be expenses you will have for your new home...paint, carpet, furniture, fixtures, decorations, etc. Even if you buy a brand new home, there are going to be things that you will want to purchase to make the home yours.
Lenders will review several months of bank statements, the fewer transactions in those accounts, the less you will have to explain and document. Make it easy on yourself, your loan officer and your underwriter, keep it clean!
If you plan ahead, not only can you plan to buy, you can plan to LIVE!
If you are considering purchasing a home in Maryland and want to be sure you are mortgage ready, my brother Tony and I will be happy to help! We help to make the mortgage process a pleasure!
If you already own your home, we are happy to provide a no-cost mortgage review to help you to determine if refinancing may be in your best interest. Please contact me at 410-960-2061.