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You’ve signed the contract and are looking forward to moving into your new home, but there are a few steps that cannot be overlooked. By following these easy steps, you will ensure yourself a smooth move into your new home.

First, get the home inspected. Arrange a time to return to the property for the inspection, typically a few days after the contract has been signed. A professionally licensed inspector will accompany you through the home and point out repairs or discrepancies if they exist. The seller will then be notified of these problems and will usually agree to take on the repairs.

Set up an appointment with your mortgage consultant and be prepared with the following financial statements: W-2 forms or signed tax forms for the past two years, copies of your most recent bank statements (current and consecutive for at least two months), copies of your most current pay stubs or proof of income if self-employed. Be prepared to pay an appraisal fee at this time if you have not already done so.

Work with your real estate agent to choose a title or settlement company for you and provide them with the necessary paperwork. The settlement company has the responsibility of making your transaction legal. They will do the title work, examine the survey, prepare mortgage documents and all the necessary closing paperwork. After the settlement, they will prepare packages for your mortgage lenders, accounting and title insurance, life documents with the county, and release escrow.

You will need to provide proof of homeowner’s insurance at this time. You have the right to choose your own insurance company. If you have not selected one, work with your real estate agent for a referral to a reputable company.

Obtain certified funds for the settlement. The title company will be able to tell you a few days in advance the exact fees that will be due.

Conduct a final walk through of the home. Be sure to note any discrepancies from the home inspection that has already been completed. By taking the time to go through this process in a detailed and timely manner, your transition into your new home will be easy and stress-free! Now is also the time to transfer all the utilities into your name.

Choose your agent wisely. Working with a full-time real estate agent is a must. Ask questions of your agent. Find out how knowledgeable he or she is about houses currently for sale in your price range and also of houses that have recently sold. Can your agent recommend a good lender that has the reputation of excellent customer service and low rates? Does your agent ask questions of you to have a full understanding of what you are looking for to help you get the most home for the money?

HOW TO FIND OUT WHAT IS IN YOUR CREDIT REPORT

Anyone who has ever had a bank account, mortgage, credit card, car loan, or account with a retail store will invariably have a credit rating. Most information in your credit rating comes from companies you have credit with, as well as from certain public records such as tax liens, bankruptcies, judgments and lawsuits. It is important to know and understand your credit rating, how the information is compiled, and how it affects your ability to acquire a loan for your new home.

Different states have different requirements and it is important that you check on what applies to you. There are three major credit-reporting agencies, Trans Union, Experian and Equifax.

Your REALTOR can recommend a reputable mortgage lender who has the reputation of providing excellent service and good rates. This lender will be able to immediately pull your credit report for your review and can make recommendations of how to make it better. The better your credit score, the higher your credit rating will be.

SELF EMPLOYED: THE BEST WAY TO GET A MORTGAGE

Self-employed borrowers present one of the most challenging areas of mortgage underwriting. Qualifying self-employed people often requires time, energy, and patience. A fair and honest qualification requires a special set of skills.

Most mortgage companies underwrite their loans based on guidelines established by the Federal National Mortgage Association (Fannie Mae), the Federal Housing Administration (FHA), or the Veterans Administration (VA). These organizations share similar underwriting guidelines for self-employed borrowers. Additionally, some lending institutions have non-standard sources to draw upon for the purpose of making loans available to those who do not fit into specific guidelines.

Generally, there is a standard set of guidelines that pertain to employment and income. They include:

Two or more years of self-employment.

Owning 25 percent or more in a business.

A two-year minimum average income. This is done to even out fluctuations common to self-employed borrowers.

A positive overall economic outlook in the area for the particular business you own.

No significant decline in income over the period analyzed.

Self-employed borrowers are generally evaluated along similar guidelines that salaried borrowers are by determining if the borrower has sufficient income to support the mortgage payment and a willingness to repay all debt provided on a credit report. However, the methods used in the analysis of the self-employed borrower’s income are different.

Most of the time a salaried borrower’s gross salary is used for qualification. This method is not adequate for the self-employed because the daily operation of the business must be supported by gross receipts along with income to the owner. This requires analyzing the borrower’s federal income tax returns and other schedules, depending on the type of business, to determine net income.

The growth, viability, and stability of the business field is also taken into account in determining the ability of the borrower to meet ongoing obligations. The length of self-employment time and overall experience in the field must also be considered. Because of the subjective nature of underwriting these loans, it is important for the borrower and the lender to put together a narrative along with documentation to support the income claim needed for the transaction.

There are several new loan programs available today for the self-employed. Lenders do their best to qualify people with the lowest rates and lowest down payments. They also attempt to complete the transaction with the fewest verification documents. Most loan programs have the same requirements for different types of self-employment. Programs are available for first-time buyers, move-up buyers, or investors regardless of their employment. However, some loan programs will be more strict for self-employed individuals.

If a borrower can’t qualify because tax write-offs decrease his new income too much, a problem common among self-employed borrowers, lenders will then look to see if the borrower has enough independent income to pay the mortgage and other debt obligations. They will carefully inspect tax returns and check to see any possible way to get a self-employed businessman into a new home. Generally, two years of tax return history will be analyzed to account for fluctuations and track income patterns. Simple common sense is often a prevailing factor when reviewing these documents.

As for newly self-employed applicants, they represent a special situation. Verifying previous employment history to determine a track record of skills, length of employment and work environment can be taken into account. Previous income helps establish the financial history, as well as indicates whether the move to self-employment represents a logical process or a complete departure from an established profession.

There are some things to keep in mind. If the borrower recently had a bad year but had previous successful years, qualification is still possible. One bad year may be the result of a divorce, death, or medical illness. Provided the business had been previously successful, don’t assume that you can’t be qualified.

As a self-employed borrower, you must be willing to spend the time to work with an agent and a mortgage consultant specific to your situation. Careful scrutiny of tax returns will be necessary and meetings will be done person-to-person - not over the phone. The process may be a little more involved than a typical home loan, but the extra work will ultimately result in the most important part of the purchase - getting you into a new home.

WANT TO KNOW WHAT A BUYERS AGENT IS?

A real estate buyer’s agent represents the consumer who is purchasing a property in the transaction. This agent owes full responsibility and loyalty to the homebuyer. He or she has solely the buyer’s best interests in mind throughout the entire transaction process. The agent is compensated by the buyer through a negotiated fee or in some states by the commission based on the selling price of the property. It is important for the consumer to discuss the buyer agent’s compensation and for the parties to agree to terms with a written contract prior to viewing properties. This agreement should detail the responsibilities of both parties throughout the process of buying a home. It should be noted that in some states legislation has been enacted to protect the buyer to the point that without a written agreement, the agent represents a seller throughout the entire transaction. Be sure to consult your real estate agent for complete details when you first start the search for purchasing any real estate property.

There are many benefits to using a buyer’s agent. These agents will:

Evaluate the specific needs and wants of a homebuyer and locate properties that fit those specifications.

Assist the buyer in viewing properties and either accompany the client on the showings or preview the properties on behalf of the client to insure that the identified specifications are met.

Research the selected properties to identify any problems or issues to help the consumer in making an informed decision prior to making an appropriate offer on the property.

Present the offer to the seller’s agent on behalf of the client.

Negotiate on behalf of the buyer to help obtain the property at the best possible price.

Review and explain all legal documents to their clients.

Recommend and assist in securing adequate financing.

Provide a list of potential qualified vendors such as movers, attorneys, home inspectors, etc.

Most importantly, when working with a buyer’s agent, the homebuyer will know and trust that they are fully represented throughout the entire transaction process.

HOW TO ACHIEVE THE NO STRESS MOVE

Moving into a new home can be one of the most stressful situations that a person can endure, so it is vital that you find ways to make the transition as easy as possible. There are two distinct types of stress that one faces when changing homes. First, there is the financial aspect of the move. Finding the right home at the right price, negotiating the purchase with a seller, filling out the lengthy paperwork involved, and handling the escrow can all take its toll. Then there is the emotional aspect of the move, and this is often where the greatest amount of stress is felt. A competent and professional real estate agent can make the financial steps of the process easy, but if your emotional needs are unfulfilled, you may find yourself tired and frustrated and not acting in your own best interest.

Work with people who are willing to educate you on every step of the process. The more knowledge you acquire when buying a new home, the more at ease you will feel. Understanding that things don’t always go exactly according to the original plan is key, so take the time to learn about the step-by-step procedures. Have confidence in your REALTOR and yourself. Ask every question on your mind, no matter how seemingly insignificant it is. When buying a new home and moving, there are no stupid questions.

Sometimes, the best way to remedy a situation is to remove it from your mind completely for a little while. Seek out a form of entertainment that you know relaxes you and embrace it. Maybe you like to play a sport or watch movies. Use your hobbies and enjoyable pastimes to relieve your stress.

Moving can be especially hard if you have children. For adults, living in a home for a few years represents just a small portion of their lives, but children who have lived in a home for most or all of their lives will face a much more difficult time when changing homes. Even just those few years represent a much larger portion of a child’s life.

Familiar things such as friends, schools, the streets where they played and the shops they were accustomed to visiting will be changing. Everything in their home will be new. The impact on a child starts the first time they hear about moving and can be very uncertain. It is important to include your children in as many aspects of your new home as possible. Instead of just letting them decorate a new room, take them to the store and let them help choose new paint or carpet, the decorations, and whatever else that will give them the opportunity to feel like the new house is really a home.

Teenagers can have a hard time if they have an established life in high school, especially when they have close friends or a boyfriend/girlfriend. Teenagers already view themselves as adult members of the family, so be sure to treat them as such. Expect that your kids may be even more distressed after the move when they must restart their lives from scratch. Give your teenagers a long distance allowance to keep in touch with those they left behind, but also encourage them to join as many clubs and sports at school as possible in order to build a new life with new friends and a new environment.

There are so many different ways that moving can be stressful on both you and your family, it is important to take the time and steps necessary to make the transition as easy as possible. Remember, the most important part is that you are starting a new life filled with new possibilities and opportunities. By making the most of these opportunities, you can have a successful move for you and your family.