The Top Five Things You Need to Know to Buy or Sell Your Home

This article is designed to address what I consider the really "big ticket" items that simply cannot be ignored. These are things that, in my opinion, simply must be done to start the process of putting a house on the market to sell or to initiate the purchase of a home. It is ot intended to provide a comprehensive list of every aspect of the process for buyers and sellers of real estate.

For most of us our homes are the biggest asset we will ever have. Increasingly, it is the one asset by which we have accumulated equity or "wealth" of any significance and by which we can borrow against to restructure debt, use as collateral for lines of credit and even draw on for a retirement fund. Consequently, when we purchase or sell our home it is often much more than just providing for, or changing the roof over our heads.

Throw into the mix the emotional component of the "home is where the heart is" and you have an extremely complex and layered investment. It is rare the individual that sees the rooms of a house only as a structure rather than the nursery they will bring home their first born, the first place they can call their own where they will entertain friends and family, the "nest" where they will begin a marriage, the room where grandmother will have her own space and be close by to care for, the place where a son or daughter will remember a childhood and maybe even a place to celebrate a wedding.

When faced with the sometimes daunting, sometimes exhilarating, sometimes scary, sometimes frustrating task of a home purchase or sale it is often helpful to have a plan of action; a set of goals; a blue print (no pun intended) as it were for navigating the process of purchasing or selling a home. To that end, the following attempts to provide knowledge, advice and guidance gathered and compiled from many professionals, with years of experience.

So, let us begin. Some of it may be repetitious to you as you may already be aware of, or have the knowledge of, the information provided. But, taken as a whole, the intent is to provide a complete picture for a fairly wide spectrum of individual experiences that addresses, at some point, an issue or point of view not only relevant to the reader, but valuable to them as well. It is quite possible, actually probable, that just one point, of and by itself from the list provided here will save you thousands of dollars and/or monumental heartache.

Number 4 - Arrange Your Personal Financial Information in Advance

Raise your hand if you have had to qualify for a home loan before. For those who have their hands raised, you already know the drill and how impersonal, probing and detailed it can become. You have found your dream home, you envision holidays, birthdays, weddings, hopes, dreams, family, friends, love and happiness. Then the screech and collision of qualifying for a home loan meets the dream. A little advance preparation will do wonders for getting one ready for the reality of what to face as well as smooth the process for all parties concerned.

The list provided below is what I recommend first time or anytime buyers to prepare in advance of looking for a home and certainly in advance of talking to a mortgage broker. This information combined with your credit scores and reports, puts you in a distinct advantage when discussing loan packages available, requirements necessary to complete a loan package and time savings if critical to the completion of the purchase. In addition, and maybe even most importantly, having prepared all of this in advance creates the accurate perception by your team of professionals representing you, that you are serious about purchasing a home. I will assure you, commissioned professionals get real serious with people that make their jobs easier and don't waste their time.

• Last two years of tax returns.
• Financial statement prepared by an accountant if possible.
• If renting, copy of lease and twelve months of cancelled checks showing rent payments on time.
• Copies of last two months utility bills.
• Photocopies of drivers license and social security card.
• The final purchase contract for the house (if applicable).
• If you're self-employed, the mortgage company may require your personal and business tax returns for the previous two years and your company's year-to-date Profit and Loss statement.
• Divorce settlement papers, if applicable.
• Updated account statements for listed assets in the application that may have changed in value.
• Information about debts or credit report items that may have been delinquent or not accurate.
• Evidence of your mortgage payments, such as canceled checks.
• An irrevocable gift letter if you are receiving a monetary gift from a relative.
• Your bank account numbers and the address of your bank branch, along with checking and savings account.
• Last two pay stubs, W2 withholding forms, tax returns for two years, or other proof of employment and income verification.
• Credit card bills for the past few billing periods, or canceled checks for rent to show payment history and amount of revolving debt.
• Information on other consumer debt such as car loans, furniture loans, student loans and retail credit cards.

Organize and place all of this information in a three ring binder with labeled dividers. Make three copies, one for your mortgage broker and two additional copies, one for yourself and one extra in case it is needed (which more than likely will happen).