So you are a First Time Home Buyer!?

This is a great time for the first time home buyer to check out the New York city housing Market for few reasons:

1) there are less serious buyers out there, more time for you to shop around
2) many sellers are willing to hear offers, this is a buyers market
3) qualified buyers who can get a loan, you can make strong offers!

First Time Buyer - Checklist for Financing Your Purchase:




Income
If you are self-employed how do the banks determine your income?
If you are changing jobs and maybe careers……….. can we still show that you are still performing similar work?
If you have a salaried job plus do some consulting work on the side……….can we include that additional income?
If you are employed in the financial industry will a bank look at your bonus to qualify you?

Credit
How does the bank determine which scores to work with and what type of scores are required for the better mortgage rates?
Do you have 2 years of credit established with credit cards, student loans, car leases or loans, mortgages or do you use your debit card for everything?
If you use the full amount of your credit lines on your credit cards and home equity lines of credit this can end up lowering your credit scores?

Liquidity
Who does the bank perceive as acceptable to give you gifts for your down payment?
What documentation must your relatives supply to verify that they are giving you a gift?
If your money is in stocks, bonds, mutual funds vs being in money market accounts will the banks calculate your liquidity differently?
401K, have you thought about using this vested equity towards your down payment?



Source:
Debra K. Bedell
Preferred Empire Mortgage Company
Loan Officer
dbedell@pemc.com
212-692-8388