Whether you’re a first-time homebuyer or you’re buying a vacation home for sale in Angel Fire, Eagle Nest or Taos, it’s always a good idea to brush up on the basics of buying a house – including how to get preapproval, choose the right real estate agent, and staying prepared for the official mortgage application.
Buying a House 101: The Basics
If you’re like most people, you’ll need a mortgage loan to buy a home. The first step on that journey is to get mortgage preapproval. Once you have that, it’s time to start interviewing possible Realtors® and checking out Angel Fire real estate listings that fit within your budget.
Mortgage preapproval is different from prequalification. Preapproval is a more in-depth process that requires you to provide your lender with proof of income, including past W2 statements and tax returns, and verifiable asset and employment information. Prequalification, on the other hand, is an informal process in which your lender says, “If you can prove your employment, income and debt, and if your credit score is where it needs to be, we should be able to give you a mortgage loan.”
Choosing the Right Realtor
When you’re buying a home, experience matters – and it can mean the difference between settling on a home that’s “good enough” and finding your dream house. Every real estate agent has his or her own strengths, but you want one who knows the area, is a proven negotiator, and who has the time to answer your questions using a communication style you’re comfortable with.
Preparing to Apply for a Mortgage
With your preapproval in-hand, you can start looking at homes that fit within your price range. When you make an offer, your agent will attach a copy of your preapproval letter so the seller knows you’re serious and qualified – and then it’s time to officially apply for a loan.
- W2 statements from the past two years (or more, if your lender requires them)
- Pay stubs from the past three or four months
- Bank statements from the past two or three months
- Tax returns from last year and the year before
- Profit-and-loss statements if you’re self-employed
- Other documents your lender requires
If you get everything ready before you actually need it, you’ll help your loan process go more smoothly. That way, you won’t encounter any unexpected obstacles along the way.
Ready to Talk to an Angel Fire Realtor About Your Next Home?
We’d love to help you find your dream home in Angel Fire or a nearby community. If you have questions, or if you’re ready to start seeing real estate listings today, give us a call at 575-377-1192 or contact the Angel Fire realty experts online. We’ll start searching for your next home right away.