The Finnin Zech Group
Address: 33747 North Scottsdale Rd Suite 101, Scottsdale, AZ 85266
There’s not one single way to approach the home-buying process, but here are the steps that we find make our clients experience the most successful.
Step 1: Be Honest and Realistic About Your Budget
We feel the best way to the start is to know how much home can you buy? Best practice is your monthly debt, ideally, doesn’t exceed 36% of your monthly take-home income. Check out our favorite online mortgage calculator to begin.
Step 2: Know Your Credit Scenario
A lending institution or mortgage company is going to start by running a credit report — the better your credit the lower your interest rate and monthly payment will be. There’s no reason to have any surprises here. We recommend getting copies of the credit reports when they’re pulled and avoid changing jobs or making any other big purchases if at all possible leading up to a home purchase to prevent any unnecessary dings on your credit.
Step 3: Gather the Docs
We know this process can be tedious but the more prepared the quick, easier and smoother your experience will be. These are the documents, in addition to your credit reports, a lender will use to assess your borrowing profile and determine, as a borrower, how likely it is for you to repay your debts. Gather the following:
Social Security Number
W2 Forms from the previous two years
Pay Stubs (most recent months)
Employment History Summary
Bank Statements (3 months)
Creditor Information. This includes debts like:
- Auto Loans
- Credit Cards
- Child Support Payments
Federal Tax Returns (2 Years)
Complete Record of Assets
- Stocks, bonds, & investment accounts
- IRA / Retirement plan
- Life insurance policies
- Automobiles owned
- Construction loan
- Gift letters
- Documentation of other income
Step 4: Talk to a Lender
We have names we can recommend, but you’re also welcome to go to the lender you feel most comfortable with. At this stage you will need and want to know the best terms and rates available to you and a solid sense of the market in your area. Then we can start the fun part… looking at homes!