2021 Reality Checklist for Buyers from Main Line PA Realtor Kimmy Rolph, is the TRUTH about what you need for borrowing in 2021. Realtors are always telling clients what they want to hear, whether you are a prospective buyer or prospective seller. Kimmy Rolph Real Estate is offering buyers a REAL real estate tip sheet for buyers on financing. The Reality Checklist for Buyers is an honest appraisal of your finances and what you will need to secure lending RIGHT now. There are still low mortgage rates and according to 2021 reports from CoreLogic, many homes are predicted to hit the market, but buyers need to be proactive in their financing to be able to compete for the right house. Here is my 2021 Reality Checklist for Buyers. If you have questions or need help navigating, call me anytime!
What you Need to Bring to a Lending Appointment
- Photo Copy of ID and Social Security Card
- Pay Stubs for 1 Month, if employed 1040, or 2 years if employed 1099
- Copies of the last two years tax returns
- Copy of Original Sales Contract (if you have not prequalified)
- Copies of 2 Months of Bank Statements
- Reward letters for social security or pension
- Proof of Receipt of Benefits (if receiving social security or on pension)
Reality Check on Finances
The simplest way to see if you can afford a house is to take a deep breath and take a hard look at money in, and money out. What are your expenses, and what are you bringing in. From here, you can determine what you can start setting aside. One of the oldest rules of thumb is to put 30% of your income into housing.
Savings and Retirement Planning
Once you have an idea of what comes in and what goes out, then you can start setting goals for your downpayment. If you already have around 20% of your dream home, you are in a good position. While many realtors will tell you that you do not need 20% down, in today’s market, with fierce competition for lending and tight inventory, a sizeable down payment will make a difference between securing the home of your dreams, and having it go to another buyer.
REAL Up Front Costs
Lenders will look for 3.5% down payment and you will need 2-6% of the mortgage cost for the closing fees. But, in today’t market, the bigger the downpayment, the more likely you are to get funding with the best terms.
We are able help buyers who do not have large downpayments and often we work with veterans or those that may be eligible for assistance or incentive programs. Give us a call!
Before you search for a home, get pre-qualified for lending. This makes it much easier to figure out what you can realistically afford and it is an incentive for sellers because you are ahead of homebuyers who will need to get requisite approvals. We have great relationships with lenders and can steer you in the right direction of one that will meet your needs.
Contact Kimmy Rolph Real Estate
This is the fun part! Once you have pre-qualified, assessed what you can spend, and are set on a location, I can help you find the home of your dreams. Main Line Real Estate offers incredible schools, community amenities, and access to the most exciting cities in the United States. Let’s start this new chapter together! Contact me about Buying a Home on The Main Line PA!