With a rough idea of how much house you can afford, your second step to buying is getting pre-approved for your loan. Pre-approval is based on your employment, income, assets, liabilities and available down payment to close on your home. Some sellers only accept offers from pre-approved buyers.
The benefits of getting pre-qualified by a lender
- Your monthly payments will be accurately calculated
- Narrows your search to homes you can afford
- Sellers will be more responsive to your offer
- Peace of mind before you search for a home
- Ability to select the best loan package without feeling pressured
How to pay for a home
A Mel Foster Co. real estate expert will show you various financing options and will include the impact of each option on the sale of your current home. Depending on the price of the home and/or the amount of your down payment, there may be several options that fit your personal situation.
- VA (for military veterans only)
- FHA (Federal Housing Administration)
- Conventional (Fixed rate over a set number of years)
- Other options include owner finance, first time home buyer programs, loan assumptions and lease purchase
Meeting with your lender
Gather all of your paperwork and be prepared for your appointment. Collect these documents:
- Tax returns from the last two years
- All W-2 tax forms from the last two years
- All account statements, such as credit card, checking and saving accounts
- Three most recent pay stubs
- A letter of promotion notice, if this applies to your job situation
- CD's, 401k, 457, and all other retirement account statements
- Identification (such as a driver's license)How much of your savings will go towards your down payment and closing costs, if any?
- Where have you worked in the last two years?
- What are your monthly long-term debt payments (including student loans, other loans & car payments)?
- Do you have child care expenses or pay alimony?
- Have you ever declared bankruptcy?
You may qualify for housing programs that can make your home more affordable.
For new construction or existing homes in Davenport, Iowa
Rock Island Economic Growth Corporation Homebuyer Program
For eligible homebuyers in Rock Island, Illinois
Moline’s Planning and Development Department
For eligible home purchases or rehabilitation in Moline, Illinois
Iowa Mortgage Credit Certificate
For eligible homebuyers in Iowa
Military Homeownership Assistance Program
For eligible service members and veterans in Iowa