GUIDE FOR FIRST TIME HOME-BUYERS
Considering to acquire your first property as your primary residence, vacation home or as an investment through financing options? We have all the details for you.
Things to keep top of mind when applying for finance assistance:
Immigration status.
Employment History.
Source of Income.
Credit Score/History.
Available funds to cover transaction expenses.
Immigration Status, This will help determine the type of financing available to apply, we must show the bank the documents to support it, whether it is a green card, VISA or work permit.
Employment History, we must show the bank a work history of at least 24 months, it does not necessarily have to be within the United States, but everything must be verified.
Source of Income, this will determine how the income is calculated as the base to understand the buyer's payment capacity, according to the type of financing. NOTE: if you are an independent contractor or business owner, two tax returns under the same branch will be required.
Credit Score, It is essential to have a credit score built as well as demonstrate good credit history (this includes payments made, what the balance of open accounts are, the number of open accounts, the age of those accounts, among others). This will show the lender how trustworthy our profile is as well as determine the loan interest rate.
Available funds/savings/assets, In this type of transaction, you must cover the down payment/initial of property value, as well as any closing costs and inspections, among others. Although there are financial assistance programs available, they aren't always affordable to get the best financing terms. The ideal scenario is to apply for a product without financial assistance. The down payment percentage will depend on the type of financing. Closing costs are the sum of fees of all the parties involved in the transaction.
Basic Requirements:
ID.
Immigration Status Documents.
The last two tax returns.
W2/1099 for the last two years. Social Security Card.
The two most recent bank statements.
Additional conditions apply on a case-by-case basis.
Learn about the financing request process:
Get in touch with a realtor, never do your purchasing process alone.
Complete the pre-qualification paperwork, here at ILS we will be happy to assist you.
Pre-approval letter. (to identify that everything is in order).
Property search, alongside the real estate agent.
Win the negotiation, the agent will be your ally.
Loan application to the bank, we will work together.
Satisfy conditions.
Coordinate the closing, alongside the bank and title house.
Signing day, in the title house office.
Welcome to your new home!
The process will always be easier when we prepare well in advance, no matter what the estimated time is to begin this process, consider coordinating the review of your credit profile and the rest of the elements as soon as possible.
What NOT to do before financing:
Open new accounts with high balances.
Increase existing accounts balance.
Miss/Stop an existing bill payment.
Become a co-signer on large debts (cars and mortgages).
Close credit cards.
Make large deposits into your bank accounts.
Job changes (consult each case).
TIPS TO IMPROVE YOUR CREDIT SCORE
- Realiza los pagos al dÃa, la puntualidad de los pagos representa aproximadamente el 35% del puntaje de crédito. Si es difÃcil para ti recordar las fechas de pago, entonces configura los pagos automáticos y/o programa en tu agenda una alarma para no pasarlos por alto. - No ocupes el 100% de tu lÃmite, nadie te ha dicho que hay dos fechas súper importantes que considerar al momento construir nuestro puntaje de crédito, la fecha de corte y la fecha de pago, la primera es donde el banco envÃa la información del balance a los burós de crédito, es ahà donde el balance deberÃa de estar por debajo del 30% del lÃmite, y la segunda la fecha lÃmite para hacer el pago mÃnimo de esa cuenta,ambas van de la mano para determinar el puntaje de crédito, no hacemos nada pagando al dia pero ocupamos un alto porcentaje en deuda. -Evita abrir demasiadas cuentas, es común aquà en USA ir a cualquier lugar y que puedan optar por una tarjeta de crédito de esa tienda, pero la verdad es que, tendrán un mejor impacto las tarjetas de crédito directamente de bancos, asegurate de no abrir cuentas que no necesites. -No cierres cuentas que ya tienen antigüedad, la edad de cada una de tus cuentas también tiene un impacto importante en el historial crediticio, aunque no las uses no las cierres ni antiguas, ni nuevas esto más bien afecta tu puntaje. -Solicita aumento de lÃmite crediticio en las cuentas más antiguas, siempre y cuando mantengas una buena relación crediticia esto puede ayudar a reducir el porcentaje de utilización, recuerda más lÃmite no significa más deuda. -Revisa tu puntaje de crédito constantemente, esto te ayudará a prevenir errores o información negativa en tu historial. Puedes chequearlo de manera gratuita a través del sitio web oficial AnnualCreditReport.com, también puedes usar otras aplicaciones como CreditKarma, Credit Wise, entre otras, incluso si quieres tener un poco más de exactitud puedes registrarte directamente en cualquier buro de credito y pagar por ello. En general, el puntaje de crédito se forma con diferentes factores (historial de pago, historial de crédito, utilización de crédito, cuentas cerradas, solicitudes de crédito, entre otros), puedes empezar a construir tu credito solo con tarjetas de crédito, no es necesario tener un prestamo de automóvil; con tan solo una tarjeta de crédito puedes comenzar sin embargo no será suficiente, empieza con unas dos o tres para diversificar.