- Know your budget: How much you spend on rent, utilities, entertainment, clothing food and transportation.
- Organize paperwork: pay stubs, W-2’s, tax returns and bank & investment statements.
- Check your credit report and bring it with you to Wells Federal Bank.
- Work with Wells Federal Bank to find out how much you can borrow and what mortgage is right for you.
- Get pre-approved. It helps you shop for a home that is in your budget and show sellers that you are a serious buyer.
- Learn as much as you can about the home buying process. Look for classes on home buying and home maintenance. There are free online educational tools at www.hud.gov and http://www.federalreserve.gov/consumers.htm
- If you are a first time home buyer, ask if there are special first time homebuyer loans available, or grant programs to assist with down payments and closing costs.
- Ask your loan officer to carefully explain payment options, rate adjustments and other loan features so that you aren’t surprised by payment increases down the road. Don’t be taken in by promises of low payments and 100 percent free financing.
- Always ask for a written good faith estimate to compare the real costs of your mortgage. It will tell you what your interest rate, monthly payment and closing costs will be.
- Visit homes to learn what you are getting for your money and what fits your budget.