being a first time buyer what are requesits when applying for a loan?

Question

i just bought a lot but now i would like to builded my dream home but before i can get started i need some money to work with which means i need to receive a loan. i would like the loan to be of about 85,000 do i have to put the property as collateral to make it easier and faster and if yes how do i know how much the property is actually worth? will they deduct the money value of the property from the loan

Answer 1

Yes you will need to put the property up as collateral to accomplish what you want.

The loan amount will depend on the ultimate value of the house. You will have two loans rolled into one and you only have to qualify once. One will be a construction loan, while the other will be a permanent loan and will take out your construction loan.

So the first thing you should do is contact a mortgage broker so you can complete a loan application, after which he will run your credit report.

This credit report will give him your credit score. Get a cup of coffee or your favorite beverage when filling out the loan application this is not a 15 minute chore.

Your credit score will tell him what loan programs you are qualified for as well as the interest rate you can expect. This credit score will tell if you are able to get a 100% loan and if not how much cash you have to bring to the table as your down payment.

There are lots of documents and information the mortgage broker will need. I will give you a few to get you started.

#1 Six months of all bank statements you use currently, as well as any statements from your 401k at your place of employment

#2 One months of pay stubs from all that are going on the mortgage.

#3 Two years of federal income taxes and W-2s

After discussing the best loan program for you and agreeing on the program you want, the mortgage broker will issue you a pre-approval letter.

Now once this has been established you should connect up with a real estate agent to find you a home. Upon finding a home you like the real estate agent will then prepare a sales contract for you and the seller to sign.

The mortgage broker will order an appraisal of the house to prove the value.

Once all the documents necessary has been collected the mortgage broker will order loan docs for the program that you agreed to earlier. Again don't plan on spending a lunch hour there to sign loan docs this is a process so be prepared to be there for awhile.

Don't sign the loan docs if anything change from what the mortgage broker explained to you. Call and get an explanation.

I hope this has been of some use to you, good luck.

"FIGHT ON"