Income Items:

1. Gather your documents. Today, many people will have to produce 2 years’ complete tax returns, including W2′s, 1099′s, K1′s, and all the schedules, as well as a month’s worth of pay stubs.

2. Be prepared to explain them. Deductions in your returns and your pay stubs may impact the income your lender will use to qualify you which, in turn, has a big impact on the loan you will get.

3. Have a breakdown of base pay versus overtime for both your pay stubs and 2 years’ W2′s. Lenders treat overtime (and bonus income) differently than your base pay. Be prepared to explain any changes over the last few years because your loan officer will ask you about it.

Asset Items:

1. Start accumulating your bank statements. Lenders look back 3 months from when you sign your contract of sale.

2. You will have to explain any and all large deposits (which are defined as deposits greater than your regular pay check) because lenders want to make sure you haven’t taken out any new loans that aren’t on your credit report.

3. Avoid any significant cash deposits. However, if you did have a cash deposit, understand that the lender will have you source it (a bill of sale and DMV receipt for that motorcycle, for example).

4. If you will be receiving a gift, consult your loan officer on how to document it (from the donor’s ability to how you deposit it).

Credit Items:

1. Ask your loan officer to run your credit and go over it with them. Believe it or not, most credit reports contain errors. Best to identify them and get working on correcting them as early as possible.

2. Do what you can to pay down your balances to under 30% of available credit to help you get the best score possible.

3. Do NOT close accounts or pay off collection accounts without discussing it with your loan officer. Either one of these logical moves can actually have a negative impact on your score.

When buying a home, remember the Boy Scout motto, “Be prepared”. Following these suggestions will make your loan approval easier and less stressful.

• IRS Tool Calculates What You Owe on First-Time Home Buyer Tax Credit

  A new online tool helps home owners who used the 2008 first-time home buyer tax credit calculate how much they now have to pay back. Read

We have been busy at H&H Residential lately.  Our inventory has almost doubled in a couple of very busy weeks.  We have a new subdivision – Branson Mill – Where we have almost 100 acres listed for sale.  It is a beautiful subdivision and worth driving through the next time you are out and about.  I have maps for the subdivision on the Branson Mill pages.  We have a great starter home at 64 Jennifer Lane – 3 bedroom, 2 full bath ranch in immaculate condition.  The owners have put in all new paint and carpet hoping to make it move in ready.  Pictures are posted but it is one of those that you must see to really appreciate.  43 Tower Street is a great investment opportunity.  This is a potential short sale.  The house needs some TLC but could be a great bargain for someone willing to put a little work in it.

There are still a few more listings to come so check back for more!