If you are thinking about buying in the Spring 2013 market, you need to start NOW to get your financing in order.
In a competitive market such as the one we are going to see over the next 6 months, a seller makes their decision on whether to accept a certain offer based upon the likelihood that the deal will close. The stronger the financing, the better off you will be.
Cash remains king, but solid financing and an offer crafted by negotiation experts like Buyer Agents of Boston will set you apart from the rest of the pack.
You will need a pre-approval from a recognized bank - if you have a pre-approval from an Internet bank or a company not recognizable by the seller or listing broker, you need to find a new loan company. Not sure which bank / lender to use - just call or send me an e-mail and I can point you in the right direction.
When you contact a lender, you will need information such as:
- Pay stubs, federal tax returns and W-2s
- Bank information such as bank accounts, checking account, retirement accounts
- If you already own a home, your current mortgage statement, tax bill, and condo fee information
- If you own a business, your federal tax returns, updated P&L, and business debts
- You will also need your social security number so the lender can run your credit report.
- Also, if you haven't filed your tax returns yet, now is the time to do it - lenders generally want to see the past tax year returns before the issue the pre-approval.
If you are paying cash - most sellers want to see that you are going to have the liquid assets to close the deal so contact your banker / financial institution to have them draft a letter confirming that you have the money that you are willing to spend ready to be used in the transaction.
Remember - financing makes or breaks a deal - make sure you are working with a lender and buyer agent that can put your offer in the best light to be reviewed by a seller.