-
Ask friends and family
for down payment assistance in lieu of presents on gift
giving occasions. You may need to provide a gift letter
(a statement of the amount gifted and the gifter's willingness
to forego repayment) at closing time.
-
If you find it difficult
to save regularly, consider increasing your deductions
for a bigger return at tax time. Use the check for your
down payment.
-
Track spending and
eliminate excess.
-
Take a second job and
earmark your earnings for your down payment fund.
-
Make a budget, which
includes your monthly and annual savings goals, and follow
it closely (be realistic for best results).
Any substantial savings goal
can seem daunting without a plan. So, make a plan and set
monthly goals as you creatively generate funds for your down
payment. If it helps you to stay connected to your goal, post
a chart of your progress or a picture of your new home. Write
about the advantages of moving into your new home when you
begin to feel discouraged about the down payment. Celebrate
each month that you make your goal.
Gathering the appropriate
documents
Before you can complete
your home loan application you must submit a number of items
to your credit union representative. These items are used
to verify your identity, fill any gaps that may be left by
the information in your credit report, and complete your personal
financial picture. It is a good idea to gather these documents
ahead of time so that the application process is not delayed
by lost or missing items.
Some items you may need to
gather include:
- Pay stubs for the last thirty days:
Even if you receive direct deposit, rather than a live
check, your employer will give you a written statement
of income earned, taxes paid and other deductions. This
is your pay stub. You should receive a pay stub for each
pay period.
- W-2's: This is an annual statement
of your earnings. W-2's are provided by your employer
each January for the previous calendar year. You will
need to furnish your copies from that last two years.
- Tax Returns: If you are unable
to locate your tax returns you can request copies from
the Internal Revenue Service. There is a nominal fee
for this service.
- Documentation of resolution for
any credit issues: For example, if your credit report
has not yet been updated to reflect a discharged obligation,
you might want to bring evidence provided by the creditor.
- Contracts/agreements for any outstanding
loans: Such as the terms of your student or automobile
loans.
- Birth Certificate: If you have misplaced
yours, check with your local department of vital records.
If you live outside the state of your birth, you may want
to check with a service such as VitalChek, which can get
your birth certificate to you in just a few days. This
service costs around $40.00.
- Driver's License or State Issued
Identification
- Proof of any supplemental income
such as child support.
|
