First Time Homebuyer Information: Lenawee County Real Estate Agents help you Prepare your Mortgage Application

As a first time homebuyer a crucial step is getting your finances in order. Once you have a handle on your income and expenses you will have an idea as to how much you can afford and the amount you will need to borrow.

Lenders require verification of income and expense records for each person who will be named on the mortgage and title of the home. You can help move the process along by bringing the following documents with you when you visit a lender:

Proof of Income: Lenders will want to see steady income for the past two years. If you have had several different jobs, be prepared to discuss the reason why.

Bank Statements: Lenders will ask for copies of bank statements to see that you have had a steady history of savings and that you haven’t made a habit of bouncing checks.

Tax Records: Bring at least 2 years income tax returns for the lender to review. This is especially important if you are self-employed. Remember that lenders consider your income as the amount you pay taxes on; not the gross income of your business.

Dividends & Investments: Lenders will consider long-term investment dividends as well as your portfolio when evaluating your income.

Alimony/Child Support: If you are receiving steady payments you can include it in your income; be sure to provide a copy of the divorce/court settlement documents for verification.

Credit Report: All lenders will want to see your credit report which lists all your long-term debts and payment history. Some will accept a recent copy if you have one; otherwise, you will have to pay a fee for them to run it.

Your income, expense and credit score are the main things a lender is going to look at when approving you for a mortgage. Being prepared in advance will also show the lender that you understand what you are getting into.

Mark Goedert of Goedert Real Estate works with first-time homebuyers; he provides information and resources to prepare them for a positive home buying experience.

Mark Goedert of Goedert Real Estate has been in business for over 50 years, working with real estate professionals, agents, developers, investors, REO brokers and first-time home buyers in the Down River area, Calhoun, Hillsdale, Ingham, Jackson, Lenawee, Livingston, Macomb, Monroe, Oakland, Washtenaw, Wayne and South Eastern Michigan Cities and Counties.